Second Mortgages Stand in Way of Short Sales

Over the past couple of years, lenders and federal policy makers have pointed to short sales as a way to revive declining housing market while at the same time helping troubled borrowers to avoid foreclosure. But for homeowners that took out second mortgages during the boom, getting a short sale approved is a nightmare.

Second mortgages have become one of the biggest roadblocks. More than a third of about 1.33 million properties in some stage of the foreclosure process have at least one junior lien, according to publicly available data tracked by Core Logic.

Many seconds and home-equity lines are worth little in a foreclosure because home prices have fallen so sharply. That gives the second-lien holder nothing left to lose. Banks claim they are approving deals where they can, but borrowers must agree to some form of debt repayment.

In the majority of these cases, the first mortgagee will not allow any more than $3,000.00 in sale proceeds to go toward the 2^nd mortgage. And the banks are reluctant to write down second mortgages even if the borrowers owe more than the value of their homes; the banks are able to pursue borrowers' after foreclosure.

This is a no win situation for all parties and only leads to unnecessary foreclosures.

If you are faced with such a situation consult an experienced foreclosure defense attorney. The Carman Law Firm can protect your rights, prevent deficiency judgments and represent your interests during negotiations with your bank.

When you work with us, you will be working with a team who believes in bringing you all the information and skills we can. We consider it our duty to help you analyze your situation, and we will provide you with every detail to ensure you make the most informed decision. We can also assist you with settling your credit card debt for pennies on the dollar and provide active credit repair, helping your credit score rise as quickly as possible after a short sale or strategic default.

The Carman Law Firm can assist those in need of debt and mortgage relief.  With many options available and trusted answers to questions that someone might have about regarding credit card debt, short sales, loan modification, foreclosure and strategic default. 

Begin protecting your family's best interests today; Call the Carman Law Firm at 1-800-763-0775 for an informative and free comprehensive consultation on how the Carman Law Firm can help you.