Second Mortgage Shop

If a foreclosure has a first and second mortgage and back taxes does the new owner have to pay the second and back taxes to accuire(own) the property?

Only the taxes need to be paid, the rest is the sellers bills. They have to have permission from the bank to short sell the property though (sell for less then is owed to everyone).

I need to transfer my second mortgage to my new home so I can lower my asking price for my unsold home. I am currently paying 2 mortgages and a second mortgage. Is there a way to transfer my second mortgage to my new home? I have only lived in my new home for 4 months and finances are getting tight. The equity is low to none in the new home.

You're in a situation that a lot of people are facing right now and there are more than a few solutions to your problem.

1. You can obtain a loan for 105-125% of you new homes value. This may or may not be enough to pay off your existing second mortgage but it may help pay down your second mortgage enough to lower your asking price. Keep in mind that the rate associated with this may be higher than what is typical for a second mortgage on a home with more equity.

2. You may, on the other hand, want to consider a short sale on your old home. A short sale is where you contact the bank on your second mortgage and have them agree to take less than what you owe. This may affect your credit in a negative way, however, it won't be as bad as a foreclosure.

3. Your third choice, is to refinance your old home and get the cash you want/need and then rent it out. This might have some tax benefits that you should talk to a CPA about. If you got into a good loan, then you would not only have your equity but you could rent out your old home for more than your monthly mortgage obligation.

I hope this helps. If you need more info, feel free to email me for my phone number.

Would you take out a second mortgage because you didn't have enough money to buy everyone a gift?
Easygreasy……I wonder, how did you know my friend is female when I never mentioned it?

No, but your friend must be a very loving person. There were probably other reasons that you may not know about. The mortage rates are at an all time low right now, so the best time to do it would be now; maybe that is the other reason. He/she also probably got a lower monthly payment which will help.

Either way, your friend made the choice. Just continue to be a friend. I sold my Yahama Clavinova (piano) one year so I could have enough money to see my family. I never regretted it. We do what we have to do.

I'm selling a rental house and will hold a $26,000 private second mortgage for the buyers. Will the government tax me on this as money I received at the closing? Even though it is just paper? Or will I pay captial gains on any amount above my basis only when I get the payments from the purchaser? Basically, does taking paper look the same to the IRS as getting paid in cash?

When I did this, my accountant counted full amount as though it was a capital gain right then. In the future years, I paid taxes on the interest I received.

Don't forget, what you're taxed on is the difference between what you paid for the property and what you sold it for. Legally, the total selling price includes the 2nd mtge amount, so I can't imagine they'd do it any other way.

I bought a house about 6 months ago, is it possible to get a second mortgage or do I have to have a certain amount of equity first?

You need a certain amount of equity, if you know there is no equity in the place don't bother trying to get a 2nd.