Home Selling in 18049>Question Details

Cindy, Home Seller in Emmaus, PA

What happens if the sell of my house covers my first mortgage, but not all of the second mortage?

Asked by Cindy, Emmaus, PA Sat Dec 6, 2008

My husband and I want to sell our house and buy my mother's house in another state. I have a first and second. The second is in the form of a home equity. Can the home equity be applied to the new house?

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Cindy email me i may be able to help with your situation. info@americahfc.org with contact number and we can discuss your home.
0 votes Thank Flag Link Wed Oct 23, 2013
It depends upon the balance left after the payment of both mortgages.
Pl call a Realtor to discuss.
0 votes Thank Flag Link Wed Oct 23, 2013
It depends upon the balance left after the payment of both mortgages.
Pl call a Realtor to discuss.
0 votes Thank Flag Link Wed Oct 23, 2013
How much asset you have built in your house. Think about the Selling Price of home minus current value = You get - commission. Further deduct both mortgages, now you can see whether you have more or less fund to buy Mobile home.
0 votes Thank Flag Link Tue Oct 22, 2013
I can help with this type of situation we specialize in these types of situations and may be able to help you avoid a short sale and repair your credit. email me at mercada3@americahfc.org.
0 votes Thank Flag Link Tue Oct 22, 2013
No but I may be intersted in you home please contact me at mercada3@americahfc.org and leave a contact number and address and I will contact you to discuss the home.
0 votes Thank Flag Link Tue Oct 22, 2013
I agree with Chris, you are under water as you have lost some equity in the home.

You better know how much is your house worth, or if you do not know consult a Realtor, and he will be happy to do Comps in the area and will brief you with market situation. Also, you have to find out mom's house value.

You can use left equity to buy your mom's house as 1033Exchange within 6 months period to save taxes.

Vinay Gupta
Realtor, CDPE
Realty Advisors Real Estate,
0 votes Thank Flag Link Fri Apr 20, 2012
In this case you are ina short sale situation. You would have to contact the second leinholder and apply for short sale permission to get the home sold. Or pay the difference out of pocket
0 votes Thank Flag Link Tue Jan 27, 2009
This is an important question Cindy. Both your mortgages on your home are liens on the property, and will need to be satisfied at settlement. It sounds like you need to work with a good Realtor, and in me, you have found one Please give me a call 215-536-6777 x 329 http://www.bradburyteam.com
0 votes Thank Flag Link Wed Dec 31, 2008
The first and second mortgages are both liens on the property and must be removed at settlement. It depends on how much more is needed, but you may want to pay off both loans even if it means selling your home and coming to the table with the money needed. Even if you get a personal loan to pay it off. this should leave you with good credit in tact and will help you when obtaining a mortgage on the other home.
The very best of luck to you!


Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
michaelddelp@verizon.net http://www.mortgagepro.instantlender.com
0 votes Thank Flag Link Mon Dec 8, 2008

Chances are you would need to sell the property and clear all the liens including the second. When you took the second out... the home equity, you used the property as collateral to get the loan. So when you sell the property, that typically HAS to be paid off. That loan has no relevance to whatever property you are thinking about purchasing.

However, there could be a large benefit of purchasing a property in this market at a great value that more than offsets taking a loss of some account for a property that one is selling. I would recommend consulting with a local real estate pro for more info !

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0 votes Thank Flag Link Sun Dec 7, 2008
I guess the most important question is if you are going to need a mortgage on your mom's home? Or if the purchase price will be less than what the appraised value of the home would be.
Web Reference: http://www.hughhenryjr.com
0 votes Thank Flag Link Sat Dec 6, 2008
Kinda... you'd have to get a home equity line on the new house to get the cash to bring to the table (i.e. pay off the deficit when you close). It's not a direct switch.. it's borrowing money from Peter to pay Paul, but it can be done.
0 votes Thank Flag Link Sat Dec 6, 2008
You will need to call the bank who holds your second mortgage and ask. They may offer you that option as their other choices are a short sale where they will get less than owe or not getting paid at all if you can not sell it and say gave it bak to the bank. Simply call them and ask them for yoru options. good luck with working things out.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Dec 6, 2008
GREAT question but no it can't apply, in order to sell the home all liens 1st, 2nd, equity line of credit must be cleared. You might be able to speak with lender on equity line determine if they will do a short sale, however it will effect your credit scores.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Dec 6, 2008
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