Can I short sell?

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Submitted by 190pounds on June 30, 2008 - 5:24pm

Live in FL, bought in 2004 for 200k with 100% financing 80/20 (I paid closing costs). Lost my job 2 years later so I HELOCed the rest of my debt to make my overall monthly obligations more manageable while trying to secure another job. I now owe roughly 255k, but the house is probably worth only 185k now. Family emergency is requiring me to move asap to another state. I don't have the money to come to the closing table with so my two choices are short sell and foreclosure.

*1st mortgage is $155k with one company and HELOC is with a different company at $100k

I welcome productive comments instead of flames as I'm not a speculator.

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well?
Submitted by 190pounds on July 1, 2008 - 11:18am.

well?

You're screwed. If Florida
Submitted by EconProf on July 1, 2008 - 5:08pm.

You're screwed.
If Florida law is like CA's, your first is non-recourse, meaning they cannot go after your other assets, but can take the property back.
But if you have a HELOC, it probably is recourse, meaning they can pursue you & get a judgement. However, I am not a lawyer, every state is different, and even the general rules I cite above have exceptions & ongoing challenges as we speak. See a local attorney specializing in real estate. Yours is a common problem everywhere, & your attorney can quickly give you answers.

I'm pretty sure that Florida
Submitted by patientlywaiting on July 2, 2008 - 1:56pm.

I'm pretty sure that Florida uses "real" mortgages (and not deeds of trust like in California).

Mortgages require judicial foreclose (unlike a deed trust "foreclosure" which is under the power of sale granted by the owner to the trustee who holds the deed on behalf of the bank).

Judicial foreclosures make it much easier to get deficiency judgments.

Everyone has some connection
Submitted by DWCAP on July 2, 2008 - 2:21pm.

Everyone has some connection to a RE agent they have some tie to. The person who sold you your home, your neighbor sister in law, you buddy at works wife. Whatever. Find someone who wont screw with you, and ask them for a good RE lawyer. Spend a few hundred dollars, and get it from the horses mouth. I doubt youll get too much here, because no one wants to give bad advice, especially in a state most dont know.

Hopefully getting it done right early can get you out without the loss of tens of thousands. $500 down, maybe saves you $85000 later. Hows that for a return rate!

PS. What area of FL? Just curious.

Your post had the tone of
Submitted by barnaby33 on July 2, 2008 - 2:23pm.

Your post had the tone of demanding information, you might wish to ask a bit more nicely.