Is there a risk with the loan?

[Simon Huber]

Hey guys!

I wondered yesterday, while reading "The Book on Rental Property Investing", if there is a risk with the loan I take. As there is the rental property as a security for the bank, can't they just take the house in case I can't pay off the loan any more, leaving me with no risk at all, only losing the money I put down?

Please tell me if I think wrongly here!

Thanks!

[Chris Seveney]

@Simon Huber

Umm no. You are responsible for the debt so they could get a judgment against you and garnish wages or put the judgment on your other assets.

Will they do this? It depends. Your only way to make sure they don’t is file ch 7 BK but then good luck getting credit after that