Selling Home Second Mortgage Huge Amount Interest in Payoff

StressedinSeattle

LoanSafe Member
Oct 12, 2015
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Second mortgage hasn't been paid since around 2009. Currently owned by SLS. Have called and been denied any type of modification, etc. House is currently for sell, requested a payoff quote and it shows over $60,000 on a $66,000 loan. The original interest rate is 9.xx, they are charging 16.xx. Anything I can do to reduce payoff amount? Is that amount of interest normal and any way around it?
 

Jzone

LoanSafe Member
Jun 20, 2017
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Second mortgage hasn't been paid since around 2009. Currently owned by SLS. Have called and been denied any type of modification, etc. House is currently for sell, requested a payoff quote and it shows over $60,000 on a $66,000 loan. The original interest rate is 9.xx, they are charging 16.xx. Anything I can do to reduce payoff amount? Is that amount of interest normal and any way around it?
If you havent been paying since 2009, you will run into trouble at closing. Did you just stop paying or file bankruptcy?
Bamkruptcy would protect you from owing the debt, but SLS would still hold the lien. Simply stop paying on the loan and you are liable for the debt and they hold lien.

SLS now has no motivation to settle, since you are selling. They will just wait for closing and take their chunk of the proceeds.
You can contact SLS and make an offer, but doubtful they will accept anything less than full payment at this point.

Why didnt you offer a settlement earlier? And do you need to sell now or can you wait?
 

OneHugeMess

LoanSafe Member
May 30, 2016
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Home prices in Seattle have literally grown to the sky, and may even touch the moon soon. It's likely the home is worth far more than double it's value when the loan was made in 2006/2007. Suffice to say, I do not believe this loan can even be settled due to the circumstances.