Kim D asked:
I have a primary mortage of $180k ($1600/mo including prop. tax over 30 yrs), a 2nd mortage of 97k (850/mo over 20yrs), and another 2nd of 27k(400/mo over 7yrs) I have a house valued at 300-310k. My income is ~110k which nets me around 6k a month. My total credit card payments are $1500/mo (60k). Right now I am over my head in payments.
I have a primary mortage of $180k ($1600/mo including prop. tax over 30 yrs), a 2nd mortage of 97k (850/mo over 20yrs), and another 2nd of 27k(400/mo over 7yrs) I have a house valued at 300-310k. My income is ~110k which nets me around 6k a month. My total credit card payments are $1500/mo (60k). Right now I am over my head in payments.
I plan on selling my house but to avoid a short sale or worse, can I negotiate with my 2nd mortage (the 27k over 7 yrs) to convert that into an unsecured personal loan? If I sell my house, I plan on living with family for a little so I would free up a lot of income, but it would help to sell the house and get some $ left over assuming I can convert the 2nd mortage? Will the bank agree to it? It would mean my debt load once the house is sold would only be 87k which is not too bad with my income I think.
Jeanne
Jose
No, you can’t “convert” a secured mortgage into an unsecured loan. No lender would agree. The only way to do that is to take out another unsecured loan and pay off your second mortgage.
You need to take a step back and see the bigger picture. You had borrowed an amount close to the size of your mortgage. Why is it, with a decent income, you have that much debt? Unless you get rid of whatever financial black hole that sucks up all your money, nothing will ever help.
$87k in unsecured loans would carry a huge interest rate which would no longer be tax-deductible. Paying a mortgage is a lot cheaper.
I would go live with you family and rent the house out. You should be able to get $2k/month. This money should cover your 1st and 3rd mortgages. Cut the credit cards and start paying. With discipline, you’ll be able to move back without most of the debt in 3 years.
Jo
Getting an unsecured personal loan from a bank or another source is a much better option than getting caught up in the credit card game. If your bank no longer offers personal loans, check around to see if you can find a bank that still offers them
Emma
Have you thought about refinancing the mortgage and putting your 1st and 2nd mtg. into one fixed rate loan….just an idea….
if your credit is good, rates are down…you should come out on top when you sale…good luck…HH
Jim
Hi,
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