Can a Lender Foreclose Multiple Properties After Default On Only One

[jjohnson89]

I have 2 homes, one in MA and one in NV. The one in MA is vacant and has been on the market for many months (at below what I owe). The mortgage company on both homes is the same, Countrywide.

Q: If I default on the MA home and it goes into foreclosure, can Countrywide use the accelleration clause on my other mortgage to take possession of the Nevada property as well (even though I will have never missed a payment)?

[Mr. Knowitall]

Presumably you didn't contract to give them any such right, did you? (e.g., is the second property collateral on the property they would be foreclosing?) If not, the two mortgages should be entirely separate.

[Jrs9212]

Countrywide is a notorious predatory lender. See MSFraud.org. They are under heavy investigation.

The first thing I noticed in your post is that "the house is worth less than what I owe". Why? Property has only appreciated in past years. Sounds like you're a victim of mortgage fraud, to wit, Countrywide, like most lenders has pet appraisers who over-appraise properties to get loans through, leaving you upside down, so you can't sell or refi with someone else. They then foreclose and charge trumped -up fees. I would never let a property go to foreclosure.

File a complaint with the FTC. They take complaints like this very seriously