what happens to a second mortgage if I do a Short Sell? I know that main mortgage wants to get back as much as they can from that lost.
2007-05-22 04:56:10 · 4 answers · asked by Cowgirl Joe 2 in Business & Finance ➔ Renting & Real Estate
the owners of the first & second mortg. have a claim.
They will both want their money back. This is why rates are always higher on the 2nd loan, they are in 2nd position to get their money back.
Depending on how much you think you could sell your home, you will probably be able to pay off the 1st mortg., you will need to contact both banks however.
The bank for 2nd, will have to agree to "accept" less than you owe. You need to contact them right away to get the process started.
They will want to see comparable sales for the area & that you gave it a good shot in trying to sell for a little bit higher.
Contact a REaltor as well , an experienced agent
2007-05-22 05:06:03 · answer #1 · answered by Miss Emily 3 · 0⤊ 0⤋
The second mortgage will want the same as the first mortgage. They want to be paid. In order to do a short sell on the FIRST mortgage, you will need the agreement of the SECOND mortgage holder to do so. Both have liens on your property and you cannot sell with unresolved liens on your house.
2007-05-22 12:11:39 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
The second company gets left overs. They can battle that out themselves. Make sure that the contract gets preapproved by both mortgage companies and that they are both aware of one another, before it is escrowed.
It is a long and painful process but it is better for them to do that then hold onto the property.
2007-05-22 12:10:55 · answer #3 · answered by Natasa 2 · 0⤊ 0⤋
if you really are in that big of a financial bind and you can't think of anyway to get yourself out then a short sell is the best alternative for all parties involved...
2007-05-22 12:10:50 · answer #4 · answered by Anonymous · 0⤊ 0⤋