Personal Finance

I think no lenders willing to redo a first mortgage while there’s another outstanding lien against the property. You can either pay off the second directly or roll the outstanding balance on that loan into a new first mortgage and pay off the second lien with the proceeds from the new loan. The first option requires cash. You didn’t say what you still owe on the second, but I’ll assume that paying it off isn’t a viable choice.

The other alternative requires that the value of your property is now sufficiently high enough to more than cover what you owe on the current first and second loans. Since your current lender won’t help you, your only choice now is to shop around for another mortgage company, bank or credit union. Fortunately, you still have about nine months to make a deal. Most lenders are taking their good ole time making that kind of decision. They’re so slow, in fact, that many sales are falling through because buyers are tired of waiting for an answer from the seller’s lender, so they cancel their contracts and walk. You, on the other hand, seem to have it in writing that a short sale is acceptable.

Tags: second mortgage