Help! Question About A Short Sale

I have my rental property listed with an agent. She suggested a short sale because the homes in the area are selling for $30K less than what I owe. I got an offer and signed the contract of sale. When my agent contacted the bank to get an approval on the short sale, she found out that my entire mortgage is a HELOC. She said that this type of loan is not eligible for a short sale and that I will be liable for the balance. Is this true?? I will owe close to $60K when the deal is done. I cannot afford another payment. I own and live in another home where the mortgage is over $3000K a month. Can they take this home from me or should I file bankruptcy? Is there anything else I can do? Does anyone know? Please help!!!

[ Edited by lvowner on Date 05/12/2007 ]

Comments(4)

  • TheShortSalePro12th May, 2007

    If a senior mortgage were paid off, a subsequent junior lien (HELOC) would become the senior or first mortgage lien.

  • cjmazur12th May, 2007

    ask you agent where she got this info.

    I have never heard of this, but could be a big surprise.

  • cjmazur21st May, 2007

    ask the bank.

    You going to have to do that eventually.

  • estateXchange21st May, 2007

    There is no law against a HELOC doing a short sale. It is completely up to the lender. They do short sales on HELOCs in the second position.

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