Can You Sell a House With Two Mortgages in New Orleans?
If you own a house in New Orleans and have two mortgages on it, you might be wondering if you can still sell. Maybe you took out a second mortgage to make repairs, consolidate debt, or cover unexpected expenses. Now you’re ready to move on, but you’re not sure what happens to those loans when you sell.
The good news is that yes, you can sell a house with two mortgages. You just need to understand how both loans will be handled at closing.
I’ve been buying houses in New Orleans for over 20 years, and I’ve worked with homeowners dealing with all kinds of financial and title situations.
Let’s go over what you should know before putting your house up for sale.
What Does It Mean to Have Two Mortgages on a House?
Having two mortgages means you have two separate loans secured by the same house.
The first mortgage is usually the original loan you used to purchase the house. The second mortgage might be a home equity loan, a home equity line of credit (HELOC), or another loan secured by the house.
Both lenders have a financial interest in the house until their loans are paid off or otherwise resolved.
For example, you might owe:
· First mortgage: $140,000
· Second mortgage: $35,000
· Total mortgage debt: $175,000
If you’re planning to sell, you need to account for both balances when figuring out how much money you’ll receive.
Do Both Mortgages Have to Be Paid Off When You Sell?
In a typical house sale, yes. Both mortgages generally need to be paid off at closing so the buyer receives clear title.
The title company or closing attorney will request payoff statements from your lenders. These statements show the amount required to pay off each loan as of the closing date.
That amount may include remaining principal, accrued interest, and other charges.
Once the sale is completed, the closing attorney uses the sale proceeds to pay the lenders and arrange for the mortgages to be released.
You don’t have to pay off both mortgages before selling your house.
The important thing is making sure the sale can cover the required payoffs or that another arrangement has been approved.
What Happens If Your House Is Worth More Than Both Mortgages?
This is usually the simplest situation.
Let’s say your New Orleans house sells for $250,000.
Here’s an example of how the numbers might work:
· Selling price: $250,000
· First mortgage payoff: $140,000
· Second mortgage payoff: $35,000
· Remaining amount: $75,000
That leaves $75,000 before deducting commissions, closing expenses, property taxes, or any other amounts you owe.
If you sell through a real estate agent, those additional expenses can reduce your proceeds.
If you sell directly to NOLA Buys Houses, we cover the closing costs associated with our purchase and don’t charge any fees or commissions.
However, both mortgage balances still need to be addressed.
That’s why I always tell homeowners to look at the entire deal, not just the selling price.
What If You Owe More Than Your House Is Worth?
This is where things can get a little more complicated.
Let’s say your house could sell for $180,000, but you owe $150,000 on the first mortgage and $50,000 on the second.
That’s $200,000 in mortgage debt before considering any selling expenses.
In this situation, you may not have enough money from the sale to pay both lenders in full.
You might need to bring additional funds to closing, negotiate with your lenders, or explore a short sale.
A short sale happens when a lender agrees to accept less than the full amount owed to allow a sale to proceed. With two mortgages, approval may be needed from both lenders.
Not every lender will approve this arrangement, and the process can take time.
Before making any decisions, I’d recommend finding out exactly what you owe and what your house could realistically sell for.
Can You Sell a House With Two Mortgages If You’re Behind on Payments?
Yes, it’s possible.
If you’re behind on one or both mortgages, you may still be able to sell your New Orleans house before foreclosure.
However, timing is important.
Missed payments can lead to additional interest, late fees, legal expenses, and foreclosure proceedings.
If you’ve already received foreclosure notices, don’t assume you have plenty of time to work things out.
Contact your lenders and find out where things stand. You may also want to speak with a Louisiana real estate attorney or housing counselor.
A sale doesn’t automatically stop foreclosure proceedings. Any deadlines need to be addressed directly.
I’ve worked with homeowners who were behind on their mortgages, and sometimes selling the house is a practical way to pay off what they owe and move forward.
What If Your New Orleans House Needs Major Repairs?
This is another situation we see regularly.
Maybe you have two mortgages, but your house also needs foundation work, a new roof, electrical repairs, or major renovations.
Spending more money fixing everything before selling may not make sense, especially if you’re already carrying two loan payments.
At NOLA Buys Houses, we buy houses in New Orleans as-is.
You don’t have to repair the roof, update the kitchen, or clean out the entire house before contacting us.
We can look at the house in its current condition and make a no-obligation cash offer.
How Does Selling to NOLA Buys Houses Work?
Our process is straightforward.
First, give us a call or fill out the form on our website. We’ll learn a little about your house and schedule a time to take a look.
Next, we’ll evaluate the house and make a cash offer based on its condition and other factors.
If you decide to accept, we’ll work with the closing attorney to review the title and mortgage payoffs.
We buy houses directly, cover closing costs, and don’t charge agent commissions or hidden fees.
You’ll know what we’re offering and can compare it with your outstanding mortgage balances before deciding.
Get the Numbers Before You Decide
If you’re wondering whether you can sell a house with two mortgages in New Orleans, the answer is yes, provided the mortgage balances and title requirements can be resolved.
The best place to start is by finding out what you owe on both loans and what your house is worth in its current condition.
Sometimes listing with an agent makes sense. Other times, selling directly for cash may be an easier option, especially when the house needs repairs or you’re dealing with financial pressure.
At NOLA Buys Houses, we’re happy to take a look and explain your options.
Call or text 504-264-1407, or visit www.nolabuyshouses.com to request a free, no-obligation cash offer.
Before spending money on repairs, give us a call. Let us see the house the way it is!