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.
Realty Advisors Real Estate,
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
4802 Old Bethlehem Pike,
Telford Pa. 18969
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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