I've been trying to look for people who have experienced this, but can't find anything - our lawyer mentioned the other day that we could have a cross-collateralization (sp?) problem with out mortgage. He said that usually in a mortgage there's a clause that says that a default on any debt with the mortgage holder is the same as defaulting on all debts. He thinks that it's possible that when we reconfirm our house (we're slightly underwater, but not much) that the bank may try to tack on the unsecured debt to the mortgage. The mortgage is with a national bank - we owe them about 60k unsecured.
Has anyone had this happen (I've read about the credit unions!) with a bank mortgage? And if so, what happened? This possibility has us a bit worried...
Has anyone had this happen (I've read about the credit unions!) with a bank mortgage? And if so, what happened? This possibility has us a bit worried...
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