Legal Question in Real Estate Law in California
Real estate
If i have a primary residence with lots of equity and then purchase a second residence with a VA lown that is guaranteed by the government for up to 36,000. If down the line I default on the payments on the second residence, could the lender come after my primary residence (first property)? Do I have to sign my first residence as collateral to buy the second property?
1 Answer from Attorneys
Re: Real estate
Q: If I default on the payments of investment property, could the lender come after my primary residence?
A: Yes. But the lender would have to obtain a court judgment first and put a lien on your primaty residence. If there is enough equity in your primary residence, then the lender could sell it at an auction.
Q: Do I have to sign my first residence as collateral..?
A: There is no law that says you "have to", and no law that prevents the lender from requiring you to do so.
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