I own two houses I'm renting the first that I have purchased, I'm trying to sell that one (8 months on the market) , I can't make the payments in the second house, somebody told me that deed-in-lieu is better than foreclosure, I don't know what to do because I don't want to loose the first house that I'm renting, but if I go to foreclosure for my second house the lender have the rigth to take away the other house or the proffit that I will make when I sell the house or refinance?. Please help me!!. THANKS.

Without knowing a bit more details, it's kinda hard to evaluate this situation.

So, a few Questions:

1. Are the 2 houses under the same mortgage?
2. What kind of mortgage do you have on them, ARM, fixed etc.? The reason I ask is that if it's an ARM, can you make the minimum payment without going into foreclosure or refinance it into a fixed to lower the payment?
3. Have you spoken to the mortgage holders on them? Perhaps they're willing to work something out for you?
4. Is the situation that you've obtained mortgages beyond your capacity to repay by overextending your credit? If the first house is rented, is it not paying for itself thereby you only have to come with funds for the second house (which should be the case).
5. Are there any other details I'm missing here?

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Jessie: Panama City Beach Real Estate, Panama City Real Estate and Panama City Beach Condos

Hi Jennifer, In the second house (the one that I'm living) I have two loans, my interest rate is based on an Index , so it changes. The house that I'm renting, the renters own me one month and they say that they are leaving because they don't have money to pay, I rent the house for $900 but my loan is 1,650 per month plus owner association fee ($100), so I'm putting more that $700 out of my pocket for that house and $2.100 in the one that I'm living, my job now is "cutting hours" and I have little childrens to take care, that's why I can't afford to pay two houses, somebody told me about Deed in lieu but I don't want to lose the first house, that's why I need to know if I go to foreclosure or deed-in-leiu on this house they can "take away " my other house or take the proffit when I have to refinance (that's what I'm trying to do now) or sell it. I own to the lender 170.000 and the house worth 230.000- 240.000, that's why I don't want to lose it.
Thank you so much for you advice. Eliana.

Hi Eliana,

This makes things much clearer...

Can you not refi this into a single fixed rate loan with lower payments? Some institutions are offering this type of loan.
I assume you are managing this yourself. Have you verified the rent amount with a property management company for assurance of the rental rate? Have you tried or considered using a property management company? Many times they are able to get more for a property than someone without their background and experience.

Quoted from wikipedia:
Unless the two houses are on the same mortgage, or if the same lender owns both loans and calls them both due at the same time, it seems unlikely you would lose both. This is more of a mortgage professional question and if you haven't already you may want to verify this with someone knowledgeable in that area. A lawyer would also be able to advise you on this as well.

In addition, previously you stated the rental property is currently for sale (for 8 months) : Have you had any offers or showings? Is the agent marketing the property effectively? Is the price comparable to others in the area with the same amenities? Is the house marketed as rental property in addition to being marketed as a residence?

I would verify this information to hopefully relieve you of a little tension during this very stressful time.

I hope this helps somewhat.

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Jessie: Panama City Beach Real Estate, Panama City Real Estate and Panama City Beach Condos