How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask JD Your Own Question
JD, Lawyer
Category: Real Estate Law
Satisfied Customers: 1335
Experience:  Over 11 years litigation experience including eminent domain and real estate disputes
Type Your Real Estate Law Question Here...
JD is online now
A new question is answered every 9 seconds

I currently own a townhome in NJ, but I would like to purchase

This answer was rated:

I currently own a townhome in NJ, but I would like to purchase and move into a house. Doing so would mean I probably have to let the townhome go into foreclosure. I have a single mortgage on the townhome, with no equity line. If I buy a house and then foreclose on the townhome, does that lender have the ability to come after any of my other assets? Or would there be any tax consequences by foreclosing on the townhome?

New Jersey law permits a lender to obtain a deficiency judgment against any borrower who defaults and the secured property fails to satisfy the debt at fair market value. This judgment can then be used to assess liens against your property, garnish wages, and execute against other assets.


Foreclosure is almost never a good option. You should make every effort to sell your town home, even if it means walking away with an unsecured loan for some residual balance. In that scenario you would have controlled your losses and protected your credit.


Further, many mortgage loans (on the proposed new home) contain provisions that could place you in default if you default on any other credit obligation... so if you went the route you are considering you could end up with two foreclosure proceedings against you.


Please reply if I can help further.



Remember to click ACCEPT only when you are satisfied with your answers. This is how we get paid for our time with your questions. I would also appreciate any positive feedback you could provide. If you are not satisfied then please reply to me so I can further assist you or find someone else to help. I am not your attorney. Therefore no attorney-client relationship exists and any communications on this website are not subject to the attorney-client privilege. For this reason, please do not divulge any personal information and use this site only for hypothetical questions. This forum is for general questions and answers and I cannot provide you with applicable law or legal opinions or advice in your jurisdiction. Please seek the advice of a competent attorney in your jurisdiction. While I can answer general questions and discuss general legal principles, I cannot give you legal advice in your state. The internet is a great place to get general information but should not be seen as a substitute for the attorney-client relationship or the services of a good lawyer in your state.

JD and 2 other Real Estate Law Specialists are ready to help you

Related Real Estate Law Questions