Posted on: 02nd Dec, 2007 08:18 pm
We have 2 mortgages, and we are thinking of doing the deed in lieu with our first mortgage but we are worried of the second lender. What solution do you suggest to solve our problem with the second lender? Will a lien with the send lender will help?
Short sale at this time is impossible anyway...
Sol 07
Short sale at this time is impossible anyway...
Sol 07
you have to consult your first lender and see if he will accept the deed-n-lieu. generally they don't want to accept a deed-in-lieu if there is a second mortgage on the property.
when the property will be sold, the sale proceeds will first go to the first lender as they have the primary lien on the property and any excess will go to the second lender. the second lender may also seek a deficiency judgment for the outstanding balance.
when the property will be sold, the sale proceeds will first go to the first lender as they have the primary lien on the property and any excess will go to the second lender. the second lender may also seek a deficiency judgment for the outstanding balance.
Hi solski,
Welcome to this forum.
First consult with the lender and see if you can afford any other options like- mortgage modification or forbearance etc.
Niicss is right. If you cannot pay the second lender with money that you will get by selling the house, the second lender can ask you for Deficiency Judgment and put a lien on your other properties.
Thanks,
Larry
Welcome to this forum.
First consult with the lender and see if you can afford any other options like- mortgage modification or forbearance etc.
Niicss is right. If you cannot pay the second lender with money that you will get by selling the house, the second lender can ask you for Deficiency Judgment and put a lien on your other properties.
Thanks,
Larry