If a person has two mortgages, for different properties,and one forecloses,will it affect the other mortgage?

A friend of mine is in a situation where she has two mortgages on two different properties, one is her primary residence, and the other is an investment property. She is about to lose the investment property to foreclosure. She is scared that this might affect her mortgage/ownership of her primary property. Can it be legally taken away from her if she defaults on one of her mortgages?


I don't think this could happen, but then again, I've never heard of anybody in this situation before.If a person has two mortgages, for different properties,and one forecloses,will it affect the other mortgage?
It will not have any affect on her other mortgage, however it can be a problem, Heres how:


The foreclosed property will be auctioned off. If the proceeds of the auction do not cover the amount of the original mortgage, the mortgage holder can place a lien on the other property after getting a judgement, for the outstanding balance. That lien will remain in place until she sells the property, at which point she will have to pay off the first mortgage, then the lien.


If the mortgage compnay is owed additional monies, and doesnt place a lien (writes off the balance), then the mortgage company will report that amount to the IRS as 'forgiveness', and she will be responsible to pay taxes on it as if it were income.If a person has two mortgages, for different properties,and one forecloses,will it affect the other mortgage?
It could very well affect her overall creditworthiness. It may affect the mortgage on her primary residence depending on how the mortgage was written adn if the primary has afinancial nexus with the income property. If there is a nexus, usually what will happen is the interest rate on the primary property might be increased so her payments go up, that is, it the contract is written that way..





If she borrowed money on the income property to make payments on her primary property she could be in real trouble because without the payment from the income property she may not be able to make her mortgage payment.





A lot of this depends on her current credit status and income.
they are separate, one foreclosure on the investment property will not affect her primary residence, Also Patrick is right