can a collateral(home) be foreclosed?
Written By: admin on January 13, 2010
One Comment
if you have a home loan , which you secure using your house (different house) as a collateral, can the bank foreclose both the home that you loan and the collateral in the event there is a default in payment? what are remedies for this? what if the homeowner cant make payments because he lost his job?
thanks for the answers.
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Tags: collateral, collateralhome, foreclosed, Home Loan, job
A bank will not foreclose because one payment is a few days late. But, yes, the bank can (eventually) foreclose on both homes, even if there homeowner has lost his job and cannot make the payments. In some case, the bank may VOLUNTARILY negotiate a reduction in payments or an extension in the due date, IF IT WISHES, but it is not required to do so. The only remedy that the bank must allow is to make all the payments.