Short Sale/Forclosure

[pattyb152]

What is the name of your state? NC

I own a house in Charlotte, NC and one in Florida and one in Saint Louis. I want to sell the one in Charlotte. That house is worth 134,000. I want to sell it for 128. I owe 182,000. I have a second Morg on it for 75,000. I have asked the second to hold the note seperate from the house. They have said that they will not do it. We are wondering if Forclousure on the second is possible and if we can still sell the house. We are not sure what we can do. Is there a way to force the second to accept our payments independent from the home? We want to repay them we just want to sell that house.

 

[HomeGuru]

What is the name of your state? NC

I own a house in Charlotte, NC and one in Florida and one in Saint Louis. I want to sell the one in Charlotte. That house is worth 134,000. I want to sell it for 128. I owe 182,000. I have a second Morg on it for 75,000. I have asked the second to hold the note seperate from the house. They have said that they will not do it.

**A: the lender cannot release the second mortgage.
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We are wondering if Forclousure on the second is possible and if we can still sell the house.

**A: yes and yes. But who would buy the house under these conditions.

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We are not sure what we can do. Is there a way to force the second to accept our payments independent from the home? We want to repay them we just want to sell that house.

**A: the lender is not in a position to make any deal since if they foreclose (or the first mortgage lender forecloses) after the sale is completed, they will get a deficiency judgement against you and can attach the judgement on your other properties as a judgement lien. They can even go so far as to foreclose on the lien by foreclosing on your other properties. Even if the lender agrees to a short sale, they will still look to repayment of the shortfall.