Legal Question in Real Estate Law in Massachusetts

Yes. They can come after you for both balances and you would not be able to sell the properties without getting the banks' permissions. You should look into a short sale. Depending upon your income, it is possibility to get a short sale approved with the bank paying the broker commission and attorney's fees. However, the 2nd mortgage reduces the chance of such occurring. Feel free to give me a call if you have any questions.

Jim Hall

Yes. The first Mortgage has probably included a notice of deficiency. While you may be able to do a short sale, the second mortgage holder will be the biggest problem unless it is the same lender.

As problematic a bankruptcy may be, it might be your best alternative. You could seek an agreement with the second mortgage holder to a payment plan and discount and then offer a deed in lieu to the first mortgage holder. Absent such alternatives your best choice is bankruptcy and I do not handle chpt 7 or chpt 13 bankruptcies.