Legal Question in Real Estate Law in Massachusetts

Hello,

I am a 1/3 owner of a house in which i live at in Massachusetts. it has a first and second mortgage on it. The house is completely underwater as it was bought in 2005 and I am contemplating walking away from it and going into foreclosure.

However,

i also a own an investment property in florida that I paid cash for in 2008. And I have some other assets like cash, 401K, IRA, truck paid off.

If I foreclose on the property that I am living at is the bank able to go after my other assets for the difference I will owe them?


Asked on 9/02/09, 7:51 pm

3 Answers from Attorneys
henry lebensbaum Law Offices of Henry Lebensbaum (978-749-3606)

if it is in your name, or if you have an interest, the bank can absolutely go after your assets.

I cannot imagine why you would think otherwise; maybe you can explain it to me?

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Answered on 9/07/09, 7:58 pm
Warren Wood Law Offices of Warren Wood

You would be wise to protect your other assets in a proper entity prior to abandoning this Massachustts property. Seek professional advice on your possible options (including short sale, deed in lieu of foreclosure, etc.)

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Answered on 9/07/09, 8:01 pm

If the bank seeks a deficiency, then you would be liable to the bank and they could go after your other assets. You might be best to seek to make a deal with the bank to give them a deed in lieu of foreclosure.

You will need to protect your other assets otherwise.

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Answered on 9/08/09, 11:33 am


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