I signed on a mortgage with my ex-wife to help her out. Stupid me. She let the property get foreclosed. Now, my new home is having the rates adjust to ridiculous amounts and I can't get anybody to refinance despite a great credit history except for the foreclosure showing up. I can't get a 100% loan anymore. I am about ready to give up and just foreclose. My questions are: What happens with the second mortgage since I am sure they will not get enough to pay them off? Can I try to sell the house, but not get enough to pay off the second mortgage? And, will I owe taxes if the whole first mortgage amount gets paid off? Thank you

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Originally Posted by mm2424

1) What happens with the second mortgage since I am sure they will not get enough to pay them off? 2) Can I try to sell the house, but not get enough to pay off the second mortgage? 3) And, will I owe taxes if the whole first mortgage amount gets paid off?

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Hello mm:

1) They'll sue you.

2) Of course you can sell the house, if it will sell. That has nothing to do with what you owe. If you get less than you owe, you'll owe the difference.

3) You owe taxes on income. IF the whole first mortgage gets paid off with money you earned or otherwise received, then YES, you'll owe taxes on it.

But, if you're in so much trouble, who's going to pay off your mortgage, and if you can do it, why haven't you already?

excon