Sell Tacoma to pay off 2nd mortgage. Need Advice

Have you looked into refinancing the truck? You could see what the bank will loan against it, could be enough to cover your 2nd and keep the truck. Although, you now have a new loan on your truck and probably owe more than it's worth but your 2nd is paid off and the lein is on your car, not your house. And your new payment could be lower than the two you currently have. Plus, interest rates on car loans are pretty low right now if you have good credit.

 

If you can sell a 6 year old truck with 115K miles for $18,000...you should quit your job and become a car salesman. You'd be able to con people left and right, make a ton of commission and pay off your debts that way.

 

I would rather have a loan against an asset that appreciates in value (house) than something that depreciates (vehicle)

 

I see your point, but if push came to shove and you had to walk away from something you had a loan on, would you rather lose your car or your house? Which do you think would hurt you more in the long run?

 

you can work out a loan modification with your bank on the house. plus, if you did decide to "walk away" it would take almost 1-3 years before they could kick your butt out. With a truck, go 45 days late and the next thing you know, your ride is on Operation Repo.

 

I'm actually in a similar situation as the OP. My 2nd mortgage is little higher but the interest is at 5.15%. I'm selling my 08 Tundra that I love, to pay off some debt. I plan on starting a family soon and would like no CC debt or 2nd mortgage to worry about! Just sell the truck, you could always buy another Taco used down the road. I'm sure once the 2nd mortgage is paid off and you have no car loan your credit score will also go up. Having no car payment every month is great!