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amiesheikh · 07-26-2009, 02:38 PM

I don't think just walking away is the best answer. Try to get them to agree to an amount to settle the debt with (if you offer them another $1000 they may agree to settle). I am a real estate agent in VA and I actually have given up some of my commission to make the deal work so that my seller can have a settled account with their second trust. If you push the first trust, they may agree to give a little more towards the second.

You didn't say what state the property was in but if you walk away and they foreclose and are allowed to sue you for the deficiency then you'll be in a worse situation than if you agreed to let them charge of the smaller amount of the remaining balance of the second trust and proceed with the short sale. Saye you owe $500K between your first and second. If you foreclose then they can cme after you for the whole amount. If you do a short sale with the first agreeing to get what they get and the second agreeing to take $3000 and charge off the rest (say for example $75,000), then once the short sale is complete and the property is sold, that $75K is an unsecured debt. They'll have a harder time getting that money from you because they have no collateral (ie your property) to secure the debt. I'd rather be in the situation where I may only owe $75K instead of $500K.

07-26-2009, 02:38 PM	#4 (permalink)
amiesheikh Member Join Date: Jul 2009 Location: Northern VA Posts: 22 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Help!!!! Second mortgage troubles I don't think just walking away is the best answer. Try to get them to agree to an amount to settle the debt with (if you offer them another $1000 they may agree to settle). I am a real estate agent in VA and I actually have given up some of my commission to make the deal work so that my seller can have a settled account with their second trust. If you push the first trust, they may agree to give a little more towards the second. You didn't say what state the property was in but if you walk away and they foreclose and are allowed to sue you for the deficiency then you'll be in a worse situation than if you agreed to let them charge of the smaller amount of the remaining balance of the second trust and proceed with the short sale. Saye you owe $500K between your first and second. If you foreclose then they can cme after you for the whole amount. If you do a short sale with the first agreeing to get what they get and the second agreeing to take $3000 and charge off the rest (say for example $75,000), then once the short sale is complete and the property is sold, that $75K is an unsecured debt. They'll have a harder time getting that money from you because they have no collateral (ie your property) to secure the debt. I'd rather be in the situation where I may only owe $75K instead of $500K.