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888terri · Jan 15, 2008, 04:11 PM

Please help me out someone! I have a house in FL worth only $190,000 in current market. I owe $182,000 (which includes $10,000 arrears) on first mortgage and $40,000 on 2nd. I am about to put house on the market for sale in the hope we can get out from under this debt. 1st mortgage company tells me they would probably accept under the $182,000 if it was fairly close - that is okay. But, it is becoming increasingly obvious that the 2nd mortgage is not going to get paid. What happens with that? Can the 2nd mortgage company stop the sale because they haven't been paid? What happens next? I am really lost and need some advice.

Fr_Chuck · Jan 15, 2008, 05:25 PM

There can not be any sale unless you pay off both mortages at the time of the sale. There has to be a check at closing for the second mortgage company or there can be no sale.

You can not just pay the first mortgage and not pay the second mortgage.

Now if you have 40,000 in the bank to write them acheck, you can not sell it for a lower amouint unless the second is willing to take less.

So you will need to sell the house for 222,000 plus enough for the real estate agents commission for there to be a sale.

888terri · Jan 15, 2008, 06:29 PM

Thank you for your clarification. It seems I am doomed no matter what I do. The house is in FL and is rented at present. We moved permanently to Australia middle of last year and hoped to keep the house until the market values increased. Unfortunately the mortgage company just put our repayments up another $200 per month and we have been unable to make up the difference between the rent and the payments consistently creating a debt we cannot seem to get out from under. If we cannot sell it, then it appears I have to let it go into foreclosure, it isn't yet, but they said they would commence proceedings shortly. It seems hopeless as I can't even get the mortgage company to send me a statement, let alone any other paperwork to Australia.

If both mortgage companies are aware the house is on the market is it possible that they would accept a reduced settlement of the mortgages because we are overseas permanently and it is highly unlikely that they would be able to recover anything further?

Fr_Chuck · Jan 15, 2008, 06:47 PM

Don't feel bad, I am helping a friend here in the states, after 45 minutes on hold the mortgage company just hangs up. They refuse to tell you over the phone the pay off, and when they send it in writing it is already a week old when you get it.

Depending on the company, they may wait several months to start the foreclosure,