We want 2 sell house and go seperate ways. We owe 1st mtg of $78k & 2nd of $92k. Advised that house will bring $170k B4 selling fees. Looks like we'd be 10-13 thou short of paying off the loans. Can the house be sold or will 2nd's lein stop the sale? If so end of question. If house can be sold and we can't pay off the second what are the 2nd mtg holder's options? The house is in both names. The 1st mtg is in both, but the second mtg is in her name alone. Other than not selling at this time our only other option is to walk away, foreclosure. Combined mtgs are near $1500 per mo. so renting the property out is not an option. Suggestions?
2007-05-21 10:13:47 · 2 answers · asked by Dogbettor 5 in Business & Finance ➔ Renting & Real Estate
A short sale seems like your best option. It saves your credit and they negotiate with the bank to take less then what is owed. You will not make money and you will lose whatever was put into the house but you won't owe money either. All of the closing costs will be paid by the bank.
If you want me to find you an agent who does this give me your name, phone number and city, state your home is in. I can refer someone to handle this for you. It seems like your best option.
2007-05-21 10:29:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You will not be able to sell without clearing both mortgages on the property. Since you have both a first and a second, the first will be paid off in entirety. The second will receive the remainder of available funds, and will hold you responsible for the difference.
If you walk away (foreclosure) you will be held liable for a far greater amount after the fact, since both firms will develop legal and procedural costs for pursuing the foreclosure. These costs will be added to the balance that you owe.
2007-05-21 10:25:02 · answer #2 · answered by acermill 7 · 1⤊ 0⤋