Home Selling in 34448>Question Details

emilostneberg, Home Seller in Homosassa, FL

I hold the ist mortgage for 90k. MY1K X WIFE WAS GIVEN A QUIT CLAIM DEED. SHE TOOK OUT AN EQUITY LINE OF CREDIT FOR 17

Asked by emilostneberg, Homosassa, FL Thu Jun 21, 2012

AN EQUITY LINE OF CREDIT FOR 171K. SHE IS SELLING THE HOUSE FOR 169K. DOES THIS QUALIFY AS A SHORT SALE OR IS A SHORT SALE FOR JUST THE MORTGAGE AMOUNT OF 90K?

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4
Beverly Isabelle’s answer
Has the Equity line (ELOC) been used? It should be closed before executing a sale. The balance owed on any and all loans including mortgages and ELOCs would have to be covered in the purchase price.
0 votes Thank Flag Link Thu Jun 21, 2012
I would recommend contacting a real estate attorney to help advise you.
0 votes Thank Flag Link Thu Jun 21, 2012
Good Morning,

I am not an attorney therefore I can not provide you with legal advise, just basic information on how a short sale works. The first thing to determine is the current value of the property, if it exceeds the amount owed on the home, then it would be a short sale. In order for you to have priority in getting paid, the mortgage you indicate you hold on the property should of been recorded prior to the equity line that your ex obtained. If your $90k mortgage was in fact recorded prior to the equity line, then your position is more favorable, and it would be more for the second lien holder to negotiate the terms of the short fall on the payment of their debt. This would be something that your ex and/or her realtor or real estate attorney would have to work out between you and the equity line lender. The strongest suggestion from me would be for you to seek the advise of a real estate attorney to ensure that your rights are properly protected with this transaction. Good luck and should you have any additional questions please feel free to contact me.

Lila Lopez
RE/MAX Advance Realty
homesbylila@yahoo.com
0 votes Thank Flag Link Thu Jun 21, 2012
If you owe more than you can sell your house is worth and can show a financial hardship you may be able to get the lender(s) to allow a short sale. You MUST list the property with a Realtor and the lender will allow the Realtor to be paid so it shouldn't cost you anything.

Since you hold the first mortgage you could probably foreclose and take ownership and the Equity Line of Credit may accept a short payoff. Now if your Mortgage for $90k was NOT recorded on public records BEFORE the HELOC was recorded then you may just have lost $90k because your "first" will now be a 2nd and the HELOC a first mortgage. So contact a title company and/or attorney asap or view the public records online at the county clerk's office to make sure your mortgage was recorded BEFORE the HELOC!

good luck!

All the best,
Alma Kee
http://www.SoldOnTampa.com
0 votes Thank Flag Link Thu Jun 21, 2012
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