How to remove a second mortgage if there is no equity left in the home after covering the first mortgage?

UPDATED: Jun 24, 2012

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How to remove a second mortgage if there is no equity left in the home after covering the first mortgage?

Our first mortgage is being modified at a lower interest rate but the bank has my equity line of $127,000 that is not secured by any equity in my home. They have turned me down twice for a modifcation. After the first mortgage of approximately $132,000 there is nothing left. The accessed tax value is $120,000.

Asked on June 24, 2012 under Real Estate Law, Florida


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

So long as you remain on legal title to the home that you own where there is really not enough equity in it with respect to the second mortgage on it, there really is not much you can do with respect to the second mortgage other than service the property's debt load and hope that the equity in it increases.

If you wanted to sell the home in a short sale, then you might be able to get the holders of the first and second mortgages to lower what they would be willing to accept on their secured loans to have the sale go through.

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