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Selling A Loan


VictorK
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Hello all.

First of all, I would like to say that I have been lurking on these forums for a long time and I've finally decided to create an account.

I'm not sure if you know the answer for this question, but if you do or know someone who does- I would greatly appreciate if you could direct me to him/her.

I gave a second mortgage to my friend. The mortgage was for $100,000 under a house. Now, I need the money I gave back.

My question is as follows; Can I sell this second mortgage or use the mortgage as a collateral for a new loan?

Thank you very much for your time and I hope to hear from you soon.

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Hello all.

I gave a second mortgage to my friend. The mortgage was for $100,000 under a house. Now, I need the money I gave back.

My question is as follows; Can I sell this second mortgage or use the mortgage as a collateral for a new loan?

Thank you very much for your time and I hope to hear from you soon.

Yes, you can sell the mortgage - you won't get close to $100,000. No, that cannot be used to collateralized a new loan.

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Thank you for your responses Ffico and Woody!

An additional question I have

What is the procedure for selling the mortgage?

A bit of additional information:

- The mortgage I gave was for 10% per annum for 20 years

- My name is written in the title of the house

- I live in Toronto, Canada; therefore, Canadian rules apply.

- The house was appraised for $729.000. The first mortgage was for $300,000

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