Can I do deed in lieu of I have two mortgages?
Deed in lieu doesn't extinguish any other liens such as junior liens on the house.
In plain English, if you have a first mortgage and you also have a delinquent second mortgage, then your first mortgage lender isn't going to want the deed back. The house would still have the second mortgage and the delinquent taxes on it. So the first mortgage lender would be getting back a house with encumbrances on it. They don't lilke that!
So as a practical matter, consider a short sale instead.
1 Comment on Can I do deed in lieu of I have two mortgages? »
Susan @ 4:37 pm:
I need some help/advice….2 mortgages…1st won't allow a short sale and wanting all $ up front, plus $29K at closing; we have an offer higher than what the property is appraised for ($5K) so not sure why they are denying short sale. 2nd mortgage is wanting $25K from me. Is it too late to do Deed in Lieu? Any ideas? I am 5 weeks away from foreclosure.