Tagged : junior lienholders

What happens to my second mortgage in a short sale?

Many of my Connecticut short sellers have multiple lienholders - most commonly a second mortgage. In order to be able to sell the house, all the liens against the property must be relieved.

A lot of folks commonly believe they don't have to worry about their second mortgage as they will have no say in the short sale but the opposite is true - junior lienholders are likely to be the most difficult obstacle in getting your short sale approved, and they have the ability to stop your short sale from happening altogether.

Most of the time second mortgages are assuming the largest loss in the short sale. While the first will end up with a good portion of their investment, the second will usually end…

A lot of my clients have more than just house debt...usually they also have credit card and other debt to add to the mix.

Once you start borrowing from one to pay the other, or keeping some up at the expense of the others, it's time to start considering your options and fast.

If you're falling behind on your home or not paying other creditors to pay for the home, it is only a matter of time before you start having collection problems.

I cannot stress enough that when you see or even foresee this happening, please GET HELP RIGHT AWAY. If you feel you will inevitably lose your house or are even considering a short sale, call a local experienced short sale agent right away.

With the right agent, your short sale is likely to be successfull.…