Posted on: 06th Jul, 2009 10:37 pm
i used to live and work in a small town in florida but three years ago my job was transferred to a larger city two hours away from where i was living. i have a house worth 350000 but the loan is for 460000 and have a home equity loan for 125000 with a different bank. i moved to the larger city and bought a house for 340000. although i still can pay for all these loans it is very difficult now because some other moneys i have to pay and think i am going to have to use my savings to pay for them. i would like to sell the house in the small town but it is worth less than the two loans i have with that house. is there anything i can do different to get rid of the second mortgages? my credit is good but if it has to be ruined to make money more available now, i guess i could live with a bad credit for some years . hope any one can help me with my puzzle
Hi filapere,
You cannot simply get rid of the second mortgage. If you've taken the loan, you'll have to pay it off. You can list your earlier property in the market and check out if there are any buyers for the property. If not, then you can apply for a deed in lieu with your lender. A deed in lieu will lower your credit score by 250 points. Moreover, you would still remain liable for the second mortgage dues. The second lender can either charge off the mortgage or place lien on your other properties in order to recover his dues.
Thanks
You cannot simply get rid of the second mortgage. If you've taken the loan, you'll have to pay it off. You can list your earlier property in the market and check out if there are any buyers for the property. If not, then you can apply for a deed in lieu with your lender. A deed in lieu will lower your credit score by 250 points. Moreover, you would still remain liable for the second mortgage dues. The second lender can either charge off the mortgage or place lien on your other properties in order to recover his dues.
Thanks
Contact the lender(s) of the property which has lost significant equity and see what can be done to avoid tarnishing your credit for a number of years. I hope this helps...
I am 4 months behind on my second, can they take my home?
Hi nj,
It will be the second mortgage lender's discretion whether or not he would take away the property i.e foreclose it. If the second lender wishes, he may even send your account to collections and the collection agency will in turn collect the dues from you. If the second lender forecloses the property, he will be liable to satisfy the mortgage dues of the first lender.
Thanks
It will be the second mortgage lender's discretion whether or not he would take away the property i.e foreclose it. If the second lender wishes, he may even send your account to collections and the collection agency will in turn collect the dues from you. If the second lender forecloses the property, he will be liable to satisfy the mortgage dues of the first lender.
Thanks
Hi James,
Thanks for letting this know as, at some point I was little confused of what exactly I have to do if I have to go for mortgage again.
Thanks!
Thanks for letting this know as, at some point I was little confused of what exactly I have to do if I have to go for mortgage again.
Thanks!