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we have 4 properties, one is primary residence and 3 are rentals. all of the first mortgages are with Bof A, two of the rentals have 2nd mortgages again with Bof A. The 2 rentals with 1st and 2nd mortgages have no equity. If we default on these 1st and 2nd mortgages can the bank come after the 3rd rental which has some equity? Can the bank come after our primary residence, Please advise our rights.
in what state do you reside?
Arizona
Yes the lender can come after the equity in the other homes as well as your primary residence.
how can we prevent this ?
The obvious way is to make the payments current. Assuming this is not possible, your next option would be a loan modification or refinance through another lender. If you cannot modify or refinance, a deed in lieu of foreclosure would be your next option.
what is a deed in lieu of foreclosure and how do you get it?
a DIL is when the bank agrees to accept the deed on the home and forgive the remainder of the loan in exchange. It is like the bank buying back the home for what is owed on it. To get it you will need to contact the bank's loss mitigation department.
Experience: Negotiate, Draft, and Review many complex commercial agreements each year.