Profile picture for user431968

How can I sell my house if I have a 2nd mortgage and a home equity line attached to my 1st mortgage?

I'm trying to sell my home with a possibility of purchasing another one.  However, I have a second mortage attached to it and also a home equity line.  The Market Price of  my house right now is $177K so far.  My pay-off WITHOUT  the other mortagages attached to the house is approximately $106K.  I owe about $65K on those two other mortgages.  Is there hope for me to be able to sell my house at a higher value and get some cash to put down for another one.  My credit is very good. 

  • March 21 2012 - Brockton
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Answers (4)

Profile picture for Ofe Polack
user, I wish you good luck on this one!  First of all,  unless you find a cash buyer who falls madly in love with your home, the appraised value of your home will dictate its value, since a lender will not lend any higher than the appraised value.  Also remember that you will have closing costs selling and buying and I am assuming that you will do it FSBO so there will be no commissions to pay.  Give it a try and see what happens!  Good luck!
  • March 22 2012
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Profile picture for user431968
Thank you so much for your answer.  What about if I do not want any extra cash and just want to sell the house at what the market value as it is?  With that money I get, I pay off those two loans....how will that affect me buying another house?  Let's just say I have $10K to put as downpayment for a home that costs between $169K-200K.  Is there a benefit as a second time home buyer?  What are the cons and pros if any?
  • March 22 2012
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Another option some sellers choose is to bring cash to the closingwhen they are "upside down". But that would not help you achieve your goal of getting some cash to put down on your next home. Would that option still he you buy another home (ie you have enough cash from other sources for the down payment and closing costs)?
  • March 22 2012
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This is the biggest problems  many homeowners make in this market.  Wanting to sell your home when the mortgage is larger then the current value of the home.  You have no choice but to continue to pay down your line of credit or bring money to the table.  Owning more than the current market value does not mean to price your home higher than the market will accept even if you find a buyer the buyer will need a loan unless they are a cash buyer.  With the price being above the market value the bank will not accept the loan if it does not appraise out for the loan.
  • March 22 2012
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