Say you buy a house and you get a loan to buy said house from Bank A.
You go to Bank B and get a loan to buy the property upon which said house sits. (A longshot, yes, but I’m sure it’s happened.)
Say hard times fell, you lose your job, and you can make only one of the payments, so you choose the house payment. Your land loan defaults.
Bank B can sieze the property, I guess, but can they force you out of your house?
How does a situation like this work?
Sorry if I’ve put this in the wrong section.
Anything which is “permanently” affixed to a piece of real estate (land) belongs to whoever owns the land.
Houses are so affixed, so you cannot get a separate loan for house and land (except contruction loans, which I am not going to address).
When multiple loans are secured by real estate, they have “positions” - which is where the term “second mortgage” originated.
Defaulting on any loan so secured can result in foreclosure.
What if your home is a trailer instead of an “actual” house?
Since a trailer can be moved, do the same rules apply?
If you own the trailer, they can kick you off the land and tell you you have to move your trailer.