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what happens to second loan if house on short sale

Posted on: 05th Sep, 2008 08:50 pm
i have a second loan on my house , it's been on the market for 2 months, i recently received a offer. what happen if the bank accept the offer, will the second loan be paid off.
if the sale proceeds are enough to cover both the mortgages, then obviously the second loan will be paid off. are the loans from the same lender? after the first loan is paid off, the lender may demand payment on the remaining second mortgage debt. he may also charge off the debt in case you cannot pay at all.

take care
Posted on: 08th Sep, 2008 03:33 am
Hi mgzambrano!

If your offer is too good and if you can pay off both the loans with that then its fine. If not, then it is the discretion of the lender as to what he will do. He may call a charge off and a collection agency will collect your loan.

Feel free to ask if you have further queries.

Sussane
Posted on: 27th Sep, 2008 01:26 am
I think You should consult some Mortgage company.

It will prove more beneficial. Or at least get some advice from those companies what to do in such conditions.
Posted on: 29th Sep, 2008 05:25 am
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