Saturday, December 4th, 2010
If you have 2 mortgages on a home can you sell the the home to pay off the first mortgage and keep paying th?
explainproduct
let me explain a little more when we bought the home they gave us 2 seperate mortgages one for $180,000 and one for $40,000 we want to sell the house to my girlfriends sister and she is gonna let us still live there.So if we are still paying the second mortgage wouldnt that be fine??
no
Topics: First Mortgages |
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no
References :
Mortgages attach to the home primarily. Thus, you could not keep paying on the second mortgage (as there would no longer be collateral, the bank would force you to pay the second loan immediately), but you might be able to find a buyer willing to assume the second mortgage for a reduced price.
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When the new owner takes possession of real estate he has closers to help close the deal and a lawyer. He wants a house free from loan controls of any kind so all loans are paid off or the house goes to the one still owed money. Some people just walk away and let the mortgage people take over the house. The second loaner has the right to take over the house and keep paying the first mortgage person on the first loan. If not the first loan person takes over .
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No…
The house serves as collateral for the second mortgage. Both will have to be cleared before the new owner can secure a free and clear title.
No new mortgager would take on the loan without clear title.
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Oregon Realtor
I think that you will find if you read the mortgages that there is a clause in both that is titled Due on Sale. So this would only work if the relative is willing to pay off the second mortgage? The title change will kick out the second mortgage so it will raise it’s head and alter your well laid plans! Re-think it, perhaps you can refinance the two into one? Speak to the first lender about this first.
References :
Sorry, but the answer is no. The person who buys the property from you will need to get clear title to that property. This means that there can’t be any liens or encumbrances on the property at closing. If even just one lien is on the property, there will not be clear title. Therefore, both loans must be paid through the closing of the new loan.
References :
http://www.achievablemortgages.com