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Sally Said:
Home Foreclosure Question for Real Estate Lawyers?We Answered:
On your personal residence, most states let the lender take the house; and nothing more.On rental houses, you are not protected. In theory: The bank will take possession of the house. They will re-sell it. The "loss" will be the difference between the loan and the sale price. YOu owe that money. They have the right to come after you for it. They can go to court and get a court judgement for it. Your credit score will drop under 600.
But in real life, the banks have not been going after you for the "loss". Because you usually don't have any money. If you had money you would have kept the house. But they have the right to go after you and some banks probably will..