Would this transaction constitute a taxable distribution from the IRA and/ or may I continue to deduct the interest paid on the second mortgage as an itemized deduction.

if husband and wife own the house together, can one of them(without the other knows) borrow $ from bank to get equaty or seond mortgage on that house? what happens if the second mortgage couldn’t be meet and be forceclosure? Will the other perosn resposible for the laon he/she even not knowing? the house is around $800,000. first mortgage is 200,000. second is 400,000.
In fact the husband got the loan few months ago. Should I sue husband or the lender?

Here’s the story in a nutshell. I purchased a condo in 2005 on an ARM. Just out of a divorce, I decided to consolidate some debt with a home equity line of credit called a 125% loan. Bad move, since I didn’t first refi the ARM. Now, the housing market has slumped, my property value is down, I have negative equity, and I can’t refi. The ARM has gone up and is due to go up again in a couple months. My payment has doubled and I can’t afford it. What will happen if I default on the 1st mortgae but remain current on the second? In other words, what happens to the second mortgage, and how might I be liable even if the payments are current on that loan?

I own a house that is rented and the renters would like to buy it. My price is $165k, but the lender will only give them a $139k mortgage, because they have credit blemishes. I’d like to offer a $26k second mortgage to them. (Or maybe a bit higher to cover expenses related to making the second mortgage). I was thinking 15 or 20 year amortization, 7% or 8% interest, with a 5 year balloon. Does this sound reasonable? And what happens if they don’t find a way to pay me off in 5 years? Do I get stuck with nothing except a second position, and therefore no money until the house is sold? How can I protect myself? And if they stop paying one month after we sign the paperwork what can I do? Anything?
Thanks much for any help!!

i have a mortgage on a home i bought last year but would like to buy an additional property for a family member. what would be the interest rate on a second mortgage and minimum downpayment required. my credit score is about 680

My second mortgage is $150k. I understand that one can only deduct the interest paid on the first $100k. Is this correct, and if so, would it be reasonable for me to just leave off 1/3 of the interest, when making the deduction (for last year I made interest only payments)?

I already have a first morgage and that interest was deducted, but can I deduct the interest from a second mortgage also?

and who is the second mortgage through..i know people with poor credit scores usually have both from the beginning but who does the buyer have the second mortgage with and how does that work?

I sold my home, and the purchaser was not able to come up with the full asking price, so we gave the purchaser a second mortgage note on the property for the balance. The note has now matured and the purchaser has not paid the principal due. Also the purchaser is trying to sell the property.

I have a first and second mortgage on my home. The first mortgage is in forclosure. What is the obligation of the second lender. Is he obligated to pay his portion of the second mortgage and then forclose and then recoop his money? Or does the home just go into forclosre and then go to auction if not brought current on time.
Is the second under any obligation to bring the loan current or is it there choice?