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I am doing a short sale on my house and i have 2 mortgages? What do i do if the house sells and i cant pay off the 2nd mortgage?

Posted on: 02nd Jun, 2010 01:20 pm
My house is on the market for a short sale and i currently have 2 mortgages on my home. If my house sells and pay off the first mortgage, how can i keep the 2nd mortgage from trying to file a judgement on my credit. Will the 2nd mortgage be willing to do a settlement with me?
hi mentoria,

the second mortgage lender has the rights to collect the dues from you after your property is short sold. the second mortgage lender can assign your account to a collection agency who will in turn collect the dues from you. you will have to negotiate with your lender before your account is assigned to the collection agency. the lender will not forgive the whole amount. you will have to negotiate to check out whether or not he forgives a part of it and gives you a payment plan to pay off the rest of the dues.
Posted on: 02nd Jun, 2010 08:29 pm
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