Short Sale Home » Seller » Doing a Short Sale but Have a HELOC?

If you have a 1st and 2nd home loan, what are your chances of executing a successful short sale with a HELOC?

You need to speak with a CPA or an attorney.  You may qualify for the 1st for a short sale, but a problem for you may arise with a HELOC.    Homes that have a 2nd mortgage that is a HELOC are usually much harder to negotiate.  The reason is that the second mortgage, is really a second mortgage when it is a HELOC.  It is a revolving “unsecured” credit debt, which can follow you, even after a sale and is technically a credit line, sort of like a credit card.

Short sales in generally are not a guaranteed option for you.  The bank will do a complete evaluation on your situation, as if you were applying for a new loan to see if you do qualify for a short sale.  They will look at your assets (any assets) and if you have anything, you may be denied.  The bank or lender will only approve the short sale if you cannot pay and can prove a true financial hardship.