Re: What happens to HELOC on a short sale?
In Reply to: What happens to HELOC on a short sale? posted by Joe on July 08, 2008 at 10:23 AM
I negotiate Short Sales all day long. Your situation is VERY common. I just completed a short where the 1st lender was owed 365k, the 2nd was owed 189k. The house was SOLD for 199k. The 1st lender gave the 2nd 2k at closing, and the seller gave the 2nd $3500, in addition to the 2k from 1st, to settle the debt completely (i.e. the 2nd will not come after him later for the remaining 187,000 that was written off). I believe that Tom is being overly pessimistic. GO FOR IT.
: I am in a position where I may have to let my home go due to financial circumstances beyond my control. I have a 1st loan of $416,000 through Citibank and a HELOC of $119,000 through WAMU which was used to payoff the original second loan to get a lower rate. The value of my home is approximately $450,000. Any advice on whether WAMU would work with me on a short sale. I also heard sometimes they might take a promissory note for a reduced amount on the HELOC to help make things work. Any advice or help would be appreciated. Thank you.
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