Help Me Sell My Overencumbered Property!
I have a rental property that I'd like to sell. The problem is that's it's overencumbered. The homes in the area typically sell from $65,000-$70,000, but my mortgages total $83,000($52,000 on the 1st and $33,000 on the 2nd mortgage). I just want out! I've spoke with various investors and they each tell me to let the 1st mortgage holder foreclose on the property and the 2nd would be wiped out! My concern is that I don't want a foreclosure on my credit, if I can help it, and I'm sure the 2nd mortgage holder will come after me with a judgement! Can someone please help! Any advice would be greatly appreciated! Thanks!
perhaps the threat of default may be enough to work something out with your second mortgage. without a default, though, a short sale is not an option. you might consider a lease/option and hope that the property values catch up to the balance on the loans.