I have a condo that is "underwater" (owe $140,000 from HELOC), but is only worth $80,000. I'm getting old and may need to move into an ALF soon, so wondering if I can short sell it. The complication is that I am also the lien holder for another property my son is purchasing from me. The $140,000 above is what I purchased that property with several years ago and my son may not fulfill the obligation to secure separate financing. How would this impact my ability to short sell the property since I would be left with another property, likely worth the entire $140,000 and what are my options to dispose of the property(s).
State/Country relating to question: Florida
Thank you for your question and for using JA. Please click accept so I will receive credit from JA for my time.Is the title to the other property solely in your son's name and you only hold the mortgage? lwpat41041.7883596412
In order to get the bank to agree to a short sale, you will have to stop making your mortgage payments and list the property for sale with a real estate agent. After about 4 months they will contact you and may even assist with the short sale. Since you only have a note and do not own the other property, it is likely that they will agree but be sure to get it in writing that they are waiving the deficiency judgment.
Even with a ballon payment coming due on the note? Likely the buyers will not be able to meet that condition and I would need to extend again, or maybe I should just take out the balloon provision altogether and write a long term loan before I try to short sell.What do you think?Do you think there is any possibility my bank would take over my note?
Do you think there is any possibility my bank would take over my note?I assume you mean the note on the other property. I don't see them "taking it over". However, they could try to claim the sale to your son was a fraudulent transfer to avoid any deficiency judgment. However, that would be highly unusual. Even with a balloon payment coming due on the note?I am not sure what note you are talking about,. the one with your son or the one on your condo. I cannot tell you what to do but probably the best thing at this point is nothing except quit making payments if you want to try and short sell.
Practicing attorney with expertise in easements
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