If I let rental property go into foreclosure how will it affect my primary residence?

I have three properties. One is my primary residence and the other two are rental properties. I can no longer afford to pay the mortgage on one of the rental properties. If I let this property go into forclosure, how will that effect my primary residence.

1 Answer

It will certainly adversely affect your credit score for many years, and will most likely keep you from refinancing your primary residence or purchasing any other property. In addition, depending on state laws, the lender holding the rental property could have the option of a default judgment and the potential for garnishments, etc. Your best bet is to ask a real estate attorney in your state as laws vary by state.