As we all know, life has a way of throwing a curveball or two. Sometimes those curveballs lead you to making tough financial choices like taking out a second mortgage on your house.
As if carrying two mortgages isn’t stressful enough, the idea of trying to sell that double-dipped property is enough to put some King County sellers over the edge.
However, unloading a piece of King County real estate with two mortgages does not have to be as intimidating or difficult as it appears. In today’s post, your friends here at RSVP are explaining the ins and outs of tackling this task. But before we dive in, we would be honored to have you subscribe to our blog so we can continue to share more tips like these with you every week.
What Is The Reason You Have Two Mortgages?
There is a multitude of reasons why you may be carrying two or more mortgages on your King County property. Here are a few of the most common:
- You could not afford to pay 20% down at the time you purchased the property
- You may have wanted to borrow against the property to make repairs or home improvements in order to increase the overall value.
- You may have needed extra money for a business, debt, or other large expense
Hopefully you are current on your payments on both mortgages; otherwise you may experience some extra financial pain in the process of selling this house and purchasing your next one.
What It Means To Sell A House With Two Mortgages
In terms of the sale itself, the process is the same as if you were to sell your King County property with only one mortgage. However, understand that you will be responsible for settling both mortgage debts upon the closing of the property. For example, if you still owe $500,000 between both mortgages, but the property only sells for $400,000, you will still have to pay-off the full $500,000 to the bank upon closing. This is why it can be very risky to take out multiple mortgages for more than the property is worth if you are not doing so for an excellent reason.
The Challenges Of Selling A House With Two Mortgages
Sometimes, there are a few extra bumps in the road when trying to sell a house with an additional mortgage. If the house has had a significant decrease in value since you purchased it, you may not be able to cover the settlement of both mortgages and should seek professional advice from a very experienced King County real estate broker before placing it up for sale. If you can’t satisfy the full amount of both loans, you may have to demonstrate financial hardship and attempt to qualify for a short sale; a situation where the lender will accept less money than the original loan amount. If this is the case, you will definitely want to enlist some high-level expertise to represent you.
Need To Sell Your King County House?
No matter how complex or impossible you may think it is to sell your King County house; it isn’t!
All you need is the right team of experts, with the best collection of resources, and a well-planned strategy that makes sense for your unique circumstances.
Whether you have multiple mortgages, the ugliest house on the block, or have tried and failed to sell your King County house in the past; there is hope!
Our experienced King County real estate brokers have seen it all, lived it all, and conquered it all before, and they will do it again for you too!
You can get on the right path to getting your property sold right now by finding out how much your property is worth on today’s market or contacting one of our many brokers listed here.
