Hopeless to move asked:
We have 2 mortgages, no money (we just paid off all our credit cards) and both work in another town.
We have 2 mortgages, no money (we just paid off all our credit cards) and both work in another town.
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2 Responses to "What way is the best to get rid of a house with two mortgages but very little cash on hand?"
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It sounds like your back is up against the wall unless you can either combine your loans or find someone willing to assume both of them. Are you contemplating selling the house and moving closer to work? You may be better off renting than buying if you have little or no cash on hand. Those 100+% mortgages will put a buyer under water before they get started. Two mortgages usually end up being more than the property is worth. I really think you are already drowning in debt on this house and are living too close to the edge with your spending habits.
Now that your credit cards have been paid off, be extremely careful in your use of them on future purchases. I have a rule that, if I can’t pay it off at the end of the month, I don’t charge it on my credit card.
I wish you a quick sale of your house.
It may end up costing you a few hundred a month, but you could attempt to rent out your house until you can pay down the 2nd mortgage enough to sell the home. Then in the new city you move to, you could rent a very modest apartment until you have dug yourself out from under that house.
If the commute isn’t unbearable, you should consider staying in the house until you have paid off enough on the 2nd mortgage in order to sell the home.
You also could try to do a short sale, but that should be avoided at all costs as it will be a significant hot to your credit that will take years to recover from.