Comments on: I have two mortgage loans. Can I offer $5k to my second mortgage, to cancel the debt?

By: Mary B

Mary B — Wed, 10 Mar 2010 07:39:59 +0000

You can offer it, but if the equity is there, the second mortgage company isn't going to agree to it. My suggestion is try to do a FSBO on your own and see if you can sell it just to break even before you even do the short sale.
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By: robbiecreations

robbiecreations — Wed, 10 Mar 2010 06:50:59 +0000

The only time the 2nd mortgage holder gets nothing is if the house sells for less than the 1st note. Yes, you can offer the 2nd mortgage company less, but don’t be surprised if they say no. If you sell the house for less than it’s worth, the mortgage company’s can still come after you for the balance, unless you file Chapter 13. Best thing you can do is talk to someone face to face about the best way to go about handling this. Most lawyers will give you a 1st consult free. Barring that, check with your banker – they will talk to you for free. Wow, what a rock and hard place – I hope you make out okay.
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By: blog.calljoey.com

blog.calljoey.com — Wed, 10 Mar 2010 06:45:59 +0000

You can try to negotiate anything but the second mortgage will not accept the offer if the house is worth 520k. There is any number of scenarios depending on your financial situation. The first mortgage holder could care less as long as they get all their money.
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By: GEE-GEE

GEE-GEE — Wed, 10 Mar 2010 06:12:59 +0000

I have 15 years of mortgage experience and 2 years as a Real Estate Agent.

Not all banks will negotiate or even deal with short sales. They have the option to say no to you. The first mortgage will most likely say no since they have the 1st position. You will probably have to talk to the 2nd mortgage holder and ask them to do a short sale. My guess is they may be willing to take 50% MINIMUM on what you owe them. So you can call them and talk to them, but most banks will only do short sales in case you have been late, or lost your job. They will not do it just because you want out of your house.
Call them and see what they are willing to do. If they are willing to take $30K off your loan, you should be in good shape to sell it and pay the commission fees to your agent. On a short sale beware though…. the bank will not allow you to make one cent on the transaction. You should also know that any amount of money the bank takes off your loan is consider regular income and you will be taxed on it at the end of the year. So if they take $30K off your loan you better be saving at least $10K to pay the IRS in January.

Have you considered just renting your place out for a while?
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By: donnyhlt

donnyhlt — Wed, 10 Mar 2010 06:06:59 +0000

Have you ever heard or Dave Ramsey? He has a show on talk radio and is very well known for these things. Check out his web site. daveramsey.com you can email him and he gives advice
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