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I have a 1st and 2nd mtg on a house. If I sell the house and there is liitle money left for 2nd , can I cont. to pay 2nd myself.

Asked over 2 years ago - Edmonds, WA

I am wondering if second mtg can legally accerelate my second if I sell my house and proceeds do not cover all of the 2nd. I
want to continue monthly payment personally on the second as there won't be lump sum cash to pay but I have the ability to pay monthly. What is the law in wa state.

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Erica Crohn Minchella

Reputation Level 14

Answered over 2 years ago. Real Estate Attorney in Skokie, IL.

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As a general rule in Real Estate Law, you would not be able to sell the property and give clear title to you buyer without paying off the second mortgage and getting a release of lien. If there is not enough money to pay the second through the sale of the property you should look at doing a short sale. Alternatively, if you don't want the credit hit for the default on the second mortgage, you might look at doing a Contract Sale (Articles of Agreement for Warranty Deed) and finish the sale transaction after you have been able to finish paying off the second mortgage.

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