I have an investment property. I have 2 mortgages on the property and the rent does not even cover one. I can not afford to pay the condo association fees. I have received notice from an attorney of pending foreclosure proceedings. What can I do? Can they foreclose if there are 2 other mortgages? Can they make me sell the property? Please let me know.
1 Answer from Attorneys
Any lender can foreclose if you're in default. If the holder of the first mortgage forecloses, that wipes out the lien of the 2d mortgage, so they might buy the property at foreclosure to protect their interest. If you have any equity in the property, you ought to try and sell it and pay off the mortgages to protect your credit. The condo fees will also have to be paid. If there is no equity, talk to the first lender about accepting a deed in lieu of foreclosure, although since there are 2 mortgages that probably won't work.