Reading through the forums, I have a few questions that hopefully someone can shed some light on.
We are trying to sell our home, but the market is not good (surprise!)....we may be able to get a buyer and pay off the first and second HELOC.....but likely we will be short. The HELOC was recently taken out (4 months ago) to help us keep paying our mortgage and other expenses with the thought we are selling anyway....we will just not be getting any $$$ when home sells. However, houses in our area are dropping in price FAST for the last three months....and now it looks like we may have to keep dropping the price, too. At this point we are current with everything, but that is because we used the HELOC. Next month, we will not be able to make our primary mortgage payment, but per the advice of an attorney, will keep paying on the HELOC (with a local CU). We had to draw out the remainder of the $$$ in HELOC to pay $14,000 in taxes.
My understanding is that we can not do a short sale because we could definitely sell the house for enough $$$ to pay off the first (pretty sure).....what will the CU that holds the HELOC do when and if the house goes into foreclosure (if it does not sell)??? Or, should we talk to the CU as that time gets closer to do a short sale....or can we even do a short sale on the HELOC? I'm confused.
More importantly, will Credit Unions work out some kind of a plan for repayment of the shortage? I know that there is a new bill for 2007 that may protect us with the tax consequences...but we are not sure. My biggest concern is not having enough $$$ for living expenses if indeed a judgment for the shortage is made.....not sure if they garnish wages or not.
Please advise. thanks!
Message Edited by hawaiibound on
04-16-2008 08:04 AM
