I own two mortgage loans. Can I submission $5k to my second mortgage, to invalidate the debt?
I have two loans- 441,000.00 and 77,000.00. House is only worth in the order of 520,000.00. I need to get out of it asap. Can I give the lender of the second mortgage some money to get out of it before I do a short public sale on the first? I was thinking about $1000 to $5000. Thanks! I inevitability all the answers I can get.
Answers:
Have you ever hear or Dave Ramsey? He has a show on talk radio and is deeply well known for these things. Check out his trellis site. daveramsey.com you can email him and he gives advice
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 scenario depending on your financial situation. The first mortgage holder could care less as long as they attain all their money.
I doubt they will take your serious ,
Offering them $5K for $77K ?
Means you want a free $72,000 . . .
Let us know if that flies .
>
You can offer but there's no opening they will accept it. your house is worth more then the 2 loans together.
You can offer it, but if the equity is near, 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 since you even do the short sale.
The merely time the 2nd mortgage holder gets nothing is if the house sell for less than the 1st note. Yes, you can extend the 2nd mortgage company less, but don't be surprised if they say no. If you supply the house for less than it's worth, the mortgage company's can still come after you for the balance, unless you wallet Chapter 13. Best thing you can do is talk to someone obverse to face about the best path to go about handling this. Most lawyer will give you a 1st consult free. Barring that, check with your backer - they will talk to you for free. Wow, what a rock and hard place - I hope you sort out okay.
I enjoy 15 years of mortgage experience and 2 years as a Real Estate Agent.
Not all banks will negotiate or even settlement with short sales. They hold the option to say no to you. The first mortgage will most potential say no since they have the 1st position. You will probably enjoy to talk to the 2nd mortgage holder and ask them to do a short sale. My guess is they may be prepared to take 50% MINIMUM on what you owe them. So you can call them and settle to them, but most banks will only do short sale in case you hold been late, or lost your duty. 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 inclined to take $30K off your loan, you should be within good shape to sell it and wage the commission fees to your agent. On a short sale beware though.... the bank will not allow you to build one cent on the transaction. You should also know that any amount of money the bank takes rotten your loan is consider regular income and you will be taxed on it at the end of the year. So if they nick $30K off your loan you better be saving at lowest possible $10K to pay the IRS in January.
Have you considered basically renting your place out for a while?
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Answers:
Have you ever hear or Dave Ramsey? He has a show on talk radio and is deeply well known for these things. Check out his trellis site. daveramsey.com you can email him and he gives advice
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 scenario depending on your financial situation. The first mortgage holder could care less as long as they attain all their money.
I doubt they will take your serious ,
Offering them $5K for $77K ?
Means you want a free $72,000 . . .
Let us know if that flies .
>
You can offer but there's no opening they will accept it. your house is worth more then the 2 loans together.
You can offer it, but if the equity is near, 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 since you even do the short sale.
The merely time the 2nd mortgage holder gets nothing is if the house sell for less than the 1st note. Yes, you can extend the 2nd mortgage company less, but don't be surprised if they say no. If you supply the house for less than it's worth, the mortgage company's can still come after you for the balance, unless you wallet Chapter 13. Best thing you can do is talk to someone obverse to face about the best path to go about handling this. Most lawyer will give you a 1st consult free. Barring that, check with your backer - they will talk to you for free. Wow, what a rock and hard place - I hope you sort out okay.
I enjoy 15 years of mortgage experience and 2 years as a Real Estate Agent.
Not all banks will negotiate or even settlement with short sales. They hold the option to say no to you. The first mortgage will most potential say no since they have the 1st position. You will probably enjoy to talk to the 2nd mortgage holder and ask them to do a short sale. My guess is they may be prepared to take 50% MINIMUM on what you owe them. So you can call them and settle to them, but most banks will only do short sale in case you hold been late, or lost your duty. 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 inclined to take $30K off your loan, you should be within good shape to sell it and wage the commission fees to your agent. On a short sale beware though.... the bank will not allow you to build one cent on the transaction. You should also know that any amount of money the bank takes rotten your loan is consider regular income and you will be taxed on it at the end of the year. So if they nick $30K off your loan you better be saving at lowest possible $10K to pay the IRS in January.
Have you considered basically renting your place out for a while?
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