Go Back To Search Results Question Need to sell home with secured loan on it? We urgently need to move to a bigger property as we are currently living in a 2 bedroom house and have just had our second child. We are basically being told that we are stuck here as we have a secured loan on the property that would need to be paid back in full on sale of the property and because of the housing market, we won't be able to get what we paid for the house, and even if we could we would still be short on paying the loan back. Are we really stuck here indefinitely? By lolaviolet28 Posted on 05/13/10 Total Answers 4 Answers- yes until that loan is cleared, and incidentally it is an extremely stupid thing to do in the first place, you are risking losing your home for a very insignificant sum of money. Answer by : ALAN T On Date 2010-05-13 02:20:14 You're stuck there until the loan is paid off. You have no alternative with a secured loan. Sometimes the loan company will allow you to transfer the secured loan to your new property, but that will only happen if there is equity in your new property, which obviously isn't going to happen in your case. So you're stuck there until such times as you can pay off the loan. A secured loan is similar to a mortgage in as much as the loan company will not allow you to sell the house unless they get their money back -so it's just the same as being stuck with negative equity. You can't sell the house unless you can come up with enough cash to pay off the difference between any equity in your house and the amount owed to the loan company. Answer by : Cala On Date 2010-05-13 04:12:15 You can ASK the bank to allow you to sign an unsecured note for the difference between the mortgage balance and the proceeds from selling the home. They would actually be admitting that you already HAVE an unsecured loan in that amount. If they took your house, they would not be able to sell for more than you can. Side note: You won't be able to obtain a mortgage to buy another property without a down payment. Answer by : STEVEN F On Date 2010-05-13 04:23:24 Hi Some secured loans lenders might transfer this to another property but this new property would have to have equity to cover the exsisting secured loan. you might be best to call lender and ask them if they could transfer this to another property and what equity you would have to have to cover the secured loan. There is improvements in the industry and house prices and increasing. Good luck and I am sure things will improve. Answer by : Ashley L On Date 2010-05-14 10:41:07   Go Back To Search Results