Am I liable for the second mortgage of a home even if it is an initial purchase of the home?
Saturday, 4. September 2010
I bought the house five years ago. I have a first and second mortgage. The second is the initial purchase of the home. It is not a refi. Thinking of walking away due to circumstances. Can they come after me for the second mortgage?
WCHS1970 Says:
Confusing question.
If you purchase a home, you take out a mortgage to cover the difference between the price of the home and the amount you contribute as a down payment.
Some borrowers take out a second mortgage if there is a gap between the primary mortgage and the amount of your down payment.
For instance you buy a house for $200,000, you put down $20,000 (10%), your first mortgage is $160,000 (80%) and you take out a second for the remainder of $20,000
But you are liable for a second only if you have agreed to borrow it.
Was that your question?
John S Says:
You really need to explain yourself buddy. Does another person (the current owner) have a mortgage on it and you are looking to buy it? If thats the case, Im sure there is a lien on the property and of course that mortgage would need to be paid off before the lein released. You need to add detail.
Lauren F Says:
If you took out the second mortgage, you are responsible to pay it. If you are buying a house from someone else, and that person has a second mortgage on the house you want to buy, they are responsible to pay it off.
David Z Says:
if you signed the loan and promised to repay then yes you are on the hook.