Posted on: 04th Dec, 2008 08:31 pm
I have two loans that they say are second mortgages. I went to the county clerk and did a lien search, but neither of those companies were listed as having liens on our house. So if I sell the house for less than what I owe on the second mortgages do I have to pay them back immediately or can I just continue to make their payments?
Hi info,
You have said that you have two loans on the property. These two cannot be both second mortgages. One has to be the first mortgage. In case if you sell off the property, both the lenders will ask you to pay off the dues. They will call the mortgage due immediately. There are chances that one of the lender will charge off your mortgage to a collection agency and then you will have to pay the dues to the collection agency.
Thanks
You have said that you have two loans on the property. These two cannot be both second mortgages. One has to be the first mortgage. In case if you sell off the property, both the lenders will ask you to pay off the dues. They will call the mortgage due immediately. There are chances that one of the lender will charge off your mortgage to a collection agency and then you will have to pay the dues to the collection agency.
Thanks
Sorry let me be more specific in my question. I have a first mortgage and can sell the property to cover that first mortgage, but I will not be able to cover the so called two second mortgages with the proceeds of the sale. Will I still be able to sell the property without paying the second mortgages? Can they stop the sale if they are not paid? I don't mind paying them, but I also want to get the house sold.
Welcome David Magee,
You may be able to sell the property but you will have to pay the two second mortgages. There are chances that both the second mortgages will be held due immediately. The second mortgages can also be charged off to a collection agency. You have mentioned that :
" I don't mind paying them, but I also want to get the house sold."
In this case, you can speak to the lenders and check what actions they will be taking against you if you sell off the property.
You may be able to sell the property but you will have to pay the two second mortgages. There are chances that both the second mortgages will be held due immediately. The second mortgages can also be charged off to a collection agency. You have mentioned that :
" I don't mind paying them, but I also want to get the house sold."
In this case, you can speak to the lenders and check what actions they will be taking against you if you sell off the property.