Posted on: 28th Dec, 2009 05:41 pm
I have a first mortgage and a equity line of credit on my home. I can sell the home and pay off the first but not the second. But, I can still afford to pay the payments on the line of credit. Will they work with me and let me continue to pay the second off without the home for equity? Thank you?
Most modern mortgages have something called a "due on sale" clause. Once activated, the "due on sale" clause makes the entire principle amount of the loan due in full immediately. A common trigger for this clause is the sale of the mortgage property.
You might be able to do a "short sale" if you're suffering financial hardship. However, if you haven't suffered a financial hardship your lender won't approve it.
You might be able to do a "short sale" if you're suffering financial hardship. However, if you haven't suffered a financial hardship your lender won't approve it.