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Second Mortgage balance after sale

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Markt1961

Junior Member
Louisiana - Two years ago we went through a chapter 7 bankruptcy and kept a house we owned in another city. We had to move for employment. We've been leasing the home to make the first and second mortgages. We lease for less than the total of the two and we're still struggling. We have resigned ourselves to the fact that we must sell the home. We have a willing buyer but he is offering 25k below the balance of the total of the two mortgages. We have a suspicion that the appraisal will also come in lower that the balance of the mortgages. Is there a way we can sell the home - without leins - pay off the first mortgage and refinance the balance of the second as an unsecured loan? :)
 


Ciarraine

Member
Possibly. You'll need to find someone willing to give you the consumer loan, though. Another way might be to pull cash out of your primary residence, if you own it, to cover the negative equity.

Good luck.
 

mdcsoft

Junior Member
If your payments are in arrears, you could also try a short sale. Basically, you are asking the 2nd mortgage holder to accept a lower payoff than your balance. It's not easy to do, and the results may be taxable. But it could be a better route than getting another loan. Look around and you can probably find a local real estate agent that is well-versed in short sales. They were pretty common in the late 80s and early 90s.
 

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