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The answer is probably yes, unless your state provides that the dream home (your homestead) is exempt from attachment by creditors. It would be different from state to state. In Texas, the answer would be no. There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure.

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Q: If a home you are selling forecloses will the bank repossess or put lien on one you are in the process of buying?
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