Posted on: 04th Nov, 2008 10:38 am
what happens when i sell my home at market value but have a second mortgage?...i'm getting married and need to sell my home. however, i have a first and second mortgage. i can easily sell my home for the first mortgage payoff, but it will not be enough for the second mortgage payoff. i can still afford to make payments on the second mortgage. can i get a loan to payoff the second mortgage? am i able to sell my home? what should i do?
Hi delta!
Welcome to forums!
Yes, you will be able to sell off the property. As you have said you will have to pay off the first mortgage from the sale proceeds. However the second lender can also demand his money. If you have another collateral, then you can take another mortgage and pay off the second loan or else you can also take a personal loan and pay off the second mortgage. Once you sell of the property, the second loan will not remain a mortgage, it will become a sort of personal loan. You will have speak with the second lender regarding this and come to a decision.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
Yes, you will be able to sell off the property. As you have said you will have to pay off the first mortgage from the sale proceeds. However the second lender can also demand his money. If you have another collateral, then you can take another mortgage and pay off the second loan or else you can also take a personal loan and pay off the second mortgage. Once you sell of the property, the second loan will not remain a mortgage, it will become a sort of personal loan. You will have speak with the second lender regarding this and come to a decision.
Feel free to ask if you have further queries.
Sussane
Hi Delta,
I suggest that you don't go for a new loan just to pay off the second mortgage. If you sell the home at market value and pay off the first loan, the second lender may have objections as because he has a certain interest in your property which is the collateral.
However, if you negotiate properly and explain them your situation, the lender may agree to accept payments just like in any unsecured loan. What I mean is your second mortgage will be treated as unsecured loan as because the collateral will be sold off.
Regards,
Jessica.
I suggest that you don't go for a new loan just to pay off the second mortgage. If you sell the home at market value and pay off the first loan, the second lender may have objections as because he has a certain interest in your property which is the collateral.
However, if you negotiate properly and explain them your situation, the lender may agree to accept payments just like in any unsecured loan. What I mean is your second mortgage will be treated as unsecured loan as because the collateral will be sold off.
Regards,
Jessica.
i am in partial agreement with you jessica. you're thoroughly correct in stating that negotiation is required with the second mortgagee. in this short sale situation, lots of lenders are willing to absorb losses (though not total losses).
i think delta has asked an appropriate question here. depending on the amount of the debt, it may well be a personal loan of sorts would be available with which to pay back the second lender.
delta, i think you're looking to take the high road on this transaction, and i think that's wonderful. it's not an easy step, however. the second mortgagee is going to want as much of its money as is possible, so your negotiations with them need to take place soon. anything you can do to ease their pain will make them much more amenable to a solution that fits your needs.
i think delta has asked an appropriate question here. depending on the amount of the debt, it may well be a personal loan of sorts would be available with which to pay back the second lender.
delta, i think you're looking to take the high road on this transaction, and i think that's wonderful. it's not an easy step, however. the second mortgagee is going to want as much of its money as is possible, so your negotiations with them need to take place soon. anything you can do to ease their pain will make them much more amenable to a solution that fits your needs.
I am selling my home with a 1st and 2nd mortgage on it. My house will sell for the value/pay off of both loans, but I haven't paid my 2nd mortgage in about a year and they charged it off. I was wonder how I can negotiate a lower payoff so I can walk away with some money in my pocket from the sale? My husband lost his job over a year ago and that's why I fell behind on the 2nd Mortgage. I haven't put my house on the market yet, I wanted to wait until I had more info on "how I can negotiate a lower payoff to my 2nd mort. company" so they will release the title at closing. I owe my 2nd mort. company about $100K. What do you think they will negotiate down to?
Hi Kellyatlantis,
You can inform the lender about your financial situation and try to convince them about your hardship. If the lender is convinced about your situation, he will agree to go for a lower payoff.
You can inform the lender about your financial situation and try to convince them about your hardship. If the lender is convinced about your situation, he will agree to go for a lower payoff.
That's not much help, I guess.
Kelly, your last question is virtually impossible to answer. We don't know the lender, the circumstances they're in, etc. that might allow us to speculate (and it would be mere speculation) what amount of money they'd accept to consider the debt paid.
If your property is worth less than the total debt owed, then that would be the place in which to start, but you've already told us you'll be able to pay the entire debt upon sale. If you second mortgage lender (or assignee) is smart, they'll recognize that you have enough equity to pay both and they won't budge.
At this point, it's anybody's guess, in my opinion.
Kelly, your last question is virtually impossible to answer. We don't know the lender, the circumstances they're in, etc. that might allow us to speculate (and it would be mere speculation) what amount of money they'd accept to consider the debt paid.
If your property is worth less than the total debt owed, then that would be the place in which to start, but you've already told us you'll be able to pay the entire debt upon sale. If you second mortgage lender (or assignee) is smart, they'll recognize that you have enough equity to pay both and they won't budge.
At this point, it's anybody's guess, in my opinion.