Do no-equity mortgages exist?
September 16, 2011 1:28 PM Subscribe
Is there such a thing as a no-equity second mortgage?
posted by anonymous to work & money (5 answers total)
(Anon because of personal finance information)
We're in a deep debt hole and have explored all our options. We're trying to avoid the big BK at all costs. Own our house with a good 5% rate and our payment is easily affordable by itself. But, there is no equity here to tap into. We owe what the house is worth after being here for about seven years. I have pretty good credit, but my wife's has taken a nose dive.
My wife started thinking that we could get a second mortgage to pay off all our debt (all together about $35K). I was reading about no-equity second mortgages, but couldn't really find any good info about them. I know they aren't ideal and if times were different, we'd not be pursuing this. But long term unemployment, big medical emergencies and a big tax bill has formed the perfect storm of desperation. We've sold everything there is to sell and cut our expenses to the bone.
Can you recommend a good company to get a no-equity second mortgage from? Or ones we should stay away from?