What will happen to other property if someone has a foreclosure ? ( please read details )?

Question:

I am trying to help a family memebr avoid bankruptcy and her situation is dire . She lives in an area where the real estate market has stalled out . Her primary residence has a huge payment plus two home equity loans . She has a smaller house that she had been renting out just to make payments . The tenants moved out with no notice . Each month she gets deeper into debt . If she were to sell either house she would still be upside down on the loans . She is at a point where she is not able to pay the larger loan . What will happen to the two equity loans if she goes into foreclosure ? Her credit is already pretty well destroyed .

Answer:
You are trapped by a depressed market.I would put all of the properties up for sale and try to get out of debt by selling at leased two of them.Try to keep paying all of the enterest while telling the lender what you intend to do.Try to keep the little house and sell the other two.You will need a real savy Realtor to get it done.Good Luck ,I wish you the best.

the first thing she needs to do is start making interest only payments...this will keep the property from going into foreclosure. This payment is much less than the entire payment. The other question is much tougher to answer. The papers she signed and terms she agreed to when taking the second mortgage dictate the actions that will be taken in the case of foreclosure. She should gather all the papers relating to the mortgages and liens to a bankruptcy atty and let them advise her of any and all options she may have. I hope this was somewhat helpful.

If the loans on the larger home are secured by the real estate and only that real estate. she need only drop the property back in the hands of the lender and move back into her little home with a much better home.
she may also have negative growth loans and should change them out on the small home b4 she gets the foreclosure on her record for the little house, thus obtaining a fixed mortgage amortized over 30-40 yrs and live there until she gets to a position in life where she can again venture out in the real estate business of investment properties.

try a short sale on the big house and down size for a while.

What will happen to other property if someone has a foreclosure ? ( please read details )?

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