Second Loan Mortgages (approve, foreclosed, credit, second mortgage)

[micheleroll]

How does a second loan morgage works? Are there any type of loans for home owners who don't have equity in their homes that need to pay off bills? For instance I owe Federal and state taxes and need about $50-60,000 to get out of this debt.

[condorito]

I work for the bank with the stagecoach and we do not do approve second mortgages aka home equity loans for people that are upside down. It works pretty much like your first mortgage. It is a loan against your home and if you fail to make your payments, your house will be foreclosed. Now, the reason why you may not be able to get one is, Think about it! If you owe more than what your home is worth, why would anybody give you even more money?

[micheleroll]

I don't owe more than what my home is worth. I don't have any equity in my home yet because I just bought it a 9 months ago. I just wanted a way to pay of some debt. I guess I will have to wait until I get equity in my home.

[TwiloMike]

Originally Posted by micheleroll

I don't owe more than what my home is worth. I don't have any equity in my home yet because I just bought it a 9 months ago. I just wanted a way to pay of some debt. I guess I will have to wait until I get equity in my home.

Home equity lines of credit and home equity loans (2nd mortgages) are extra monies borrowed against already existing equity in the property and even this has restrictions on it: most banks won't let you have more than a total of, say, 80% worth of outstanding loans compared to your property's value. If you don't have equity yet, you won't qualify for such a loan.