Legal Question in Real Estate Law in New York

Real estate liability question

I own 2 houses; one I I've had for 15 years & the other I bought 3 months ago. The 1st will be paid off in appx 5 years. I'm unable to afford the new house & must put it on the market for sale. I have never missed a mortgage payment; if I explain to the mortgage company my situation & list it asap, how bad will my credit get; also will they come after my 1st house for payment on the 2nd?


Asked on 12/01/08, 9:38 am

1 Answer from Attorneys
Michael Markowitz Michael A. Markowitz, PC

Re: Real estate liability question

Non-payment of a mortgage will adversely affect your credit, although I am unable to tell you to what extent.

Unless a mortgage is filed against the 1st house for the loan on the 2nd house, the bank cannot foreclose on the 1st house. However, if the bank receives a deficiency judgment, it can use that judgment as a lien on the first house (lien lasts 10 years) and may be able to force a sale on the first house with the judgment.

Mike.

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Answered on 12/01/08, 9:42 am


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