It is possible to sell your home if you have multiple mortgages. But, it can be difficult. This is something many short sale homeowners have to consider because they have multiple mortgage. All the mortgages on the property will have to be satisfied before you can give clear title to the buyer. But the most important negotiation is the one which has to be made with the lenders; which will be two or three in case of multiple mortgages on your home.

Negotiating with two or more lenders might seem to be an intimidating task. But you do have a strong negotiating position because second mortgages typically receive nothing if the home is foreclosed by the primary lender. It is also possible for the first mortgage company to reject a short sale offer if they thinks that they can do better with a foreclosure. Most second mortgages lien on the property is wiped out in a foreclosure.

They will opt for that if the second mortgage is demanding to much money to approve the short sale. A second or third mortgage is called a junior mortgage. (Third mortgages are rare. We have never seen a fourth mortgage on over 100 short sales we have worked on.) The junior mortgage received a much smaller percentage of whatever they are owed. Most of them agree to the short sale with them being paid $3,000 and sometimes less than that. The easiest second mortgage negotiations are short sales of piggyback loans. A piggy back loan is the junior mortgage when a single bank issues two mortgage against the same house.

This was very common during the housing boom. The loan officers at many banks offered this combination to borrowers. The costs were usually lower than getting just one mortgage and the banks agreed to the loans. This piggy back loan is the second mortgage which is written off by the same lender as of the first mortgage. In this case the Realtor or the home owner will be able to negotiate with a single person at the bank that is handling the two loans.

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