Are you thinking about selling your house in Harvey but still have two mortgages to pay off?
Maybe you took out a second mortgage to make improvements, pay bills, or handle an unexpected financial situation. Now you’re ready to sell, but you’re worried that having two loans might make the process difficult.
Here’s the good news: You can sell a house with two mortgages in Harvey. The important thing is figuring out how much you owe and whether the sale will cover both loans.
I’ve been buying houses throughout Harvey, Jefferson Parish, and Greater New Orleans for over 20 years. I’ve seen plenty of situations where homeowners weren’t sure what they could do because of outstanding loans or other financial obligations.
Let’s talk about how the process works and what you should consider before selling.
Can You Sell a House If You Have a First and Second Mortgage?
Yes. Having two mortgages doesn’t automatically prevent you from selling.
Your first mortgage is usually the loan you used to purchase the house.
A second mortgage is another loan secured by the same house. It could be a home equity loan or a home equity line of credit, commonly called a HELOC.
Some homeowners take out second mortgages to pay for renovations, medical expenses, debt consolidation, or other major expenses.
The important thing to understand is that both loans are tied to your house.
When you sell, both mortgage liens generally need to be paid off or otherwise cleared so the buyer can receive clear title.
How Are Two Mortgages Paid Off at Closing?
In a typical Harvey house sale, you don’t have to pay off both mortgages before finding a buyer.
Instead, the title company or closing attorney coordinates the payoffs during closing.
Here’s how the process generally works:
1. The closing attorney identifies the mortgages recorded against the house.
2. Payoff statements are requested from both lenders.
3. The buyer’s funds are used to pay the required mortgage balances.
4. The lenders provide the necessary mortgage releases.
5. Any remaining proceeds, after other expenses and obligations, go to the seller.
The payoff amounts may be slightly higher than the balances shown on your monthly statements because of accrued interest or other charges.
If you have a HELOC, the closing attorney will also need to coordinate the payoff and closure of that credit line.
This is why it’s important to tell the closing attorney about both loans early in the process.
How Much Money Will You Receive After Paying Two Mortgages?
Let’s look at an example.
Suppose you’re selling your house in Harvey for $225,000.
You currently owe:
· First mortgage: $120,000
· Second mortgage: $40,000
· Total mortgage balances: $160,000
After paying both mortgages, you would have $65,000 remaining before commissions, closing expenses, taxes, and other amounts owed.
If you’re selling through a real estate agent, you’ll also need to consider the commissions you’ve agreed to pay.
If your house needs repairs, you might have additional expenses or negotiate credits with the buyer.
At NOLA Buys Houses, we buy houses directly for cash, cover closing costs associated with our purchase, and don’t charge agent commissions.
That can make it easier to compare your options, but the mortgages themselves still need to be paid or otherwise resolved.
My advice is always to look at what you’ll actually receive after everything is paid.
What Happens If You Owe More Than Your Harvey House Is Worth?
This is one of the biggest concerns homeowners have when they’re carrying two mortgages.
Let’s say your house could sell for $190,000, but you owe $155,000 on the first mortgage and $50,000 on the second.
That’s $205,000 in mortgage debt, which is more than the expected selling price.
You may need to bring money to closing or work with your lenders to find another solution.
One possibility is a short sale.
A short sale is when a lender agrees to accept less than the amount owed so the house can be sold.
When two mortgages are involved, both lenders may need to approve the arrangement.
Keep in mind that a short sale isn’t guaranteed. You should also ask whether any remaining debt will be forgiven or whether the lender could still pursue the unpaid balance.
If you’re in this situation, I recommend speaking with your lenders and a qualified professional before signing a sales agreement.
Can You Sell If You’re Behind on Both Mortgage Payments?
Yes, you may still be able to sell your Harvey house if you’re behind on payments.
Maybe you’ve had a change in income, unexpected expenses, or simply can’t keep up with two mortgage payments anymore.
Whatever the reason, it’s important to address the situation before it gets worse.
Falling behind can lead to late fees, additional interest, and eventually foreclosure proceedings.
If you’re already facing foreclosure, time matters. Selling the house doesn’t automatically stop the foreclosure process.
You’ll need to understand your deadlines and communicate with your lenders.
Depending on your situation, selling may allow you to pay off both mortgages and avoid further financial complications.
But the sooner you review your options, the better.
What If Your Harvey House Needs Repairs?
Having two mortgages can make it difficult to spend additional money fixing up your house before selling.
Maybe your Harvey house needs a new roof, foundation repairs, updated plumbing, or electrical work.
You might also have storm damage, an outdated interior, or a house that’s been vacant for a while.
If you’re already paying two mortgages, spending thousands of dollars on repairs might not be practical.
That’s where selling as-is can be worth considering.
At NOLA Buys Houses, we buy houses in Harvey in their current condition.
You don’t have to renovate the kitchen, replace the roof, or clean everything out before we take a look.
We’ll evaluate the house and give you a straightforward cash offer with no obligation to accept.
Selling Your Harvey House Directly to NOLA Buys Houses
We try to keep the process simple.
You contact us, tell us a little about your house, and schedule a time for us to see it.
We’ll review its condition and make a cash offer.
If you accept, the closing attorney will examine the title, request the necessary mortgage payoffs, and determine what needs to be resolved before closing.
We buy directly, cover closing costs, and don’t charge real estate agent commissions or hidden fees.
We can also work with you on a closing date that fits your situation, subject to the title and mortgage requirements.
You remain in control of whether to accept our offer.
Know Your Options Before Selling a House With Two Mortgages
If you’re wondering whether you can sell a house with two mortgages in Harvey, the answer is yes.
The key is understanding your loan balances, the value of your house, and what you’ll have left after closing.
If your house is in good condition and you have time to wait, listing with an agent may be a good option.
But if you’re dealing with repairs, two mortgage payments, or financial pressure, selling directly to a local cash house buyer may be worth exploring.
At NOLA Buys Houses, we’re happy to look at your house and help you understand what a cash offer would look like.
Call or text 504-264-1407, or visit www.nolabuyshouses.com to request a free, no-obligation cash offer.
Don’t spend money fixing up your house before you know your options. Let us see it the way it is!