What happens if my second mortgage is really a home equity line of credit (HELOC)?

Negotiating a short sale on a HELOC can be a little tricky, but we do this all of the time. We will walk you through the ins and outs of how these are negotiated without the homeowner paying any money back AND without signing a new note to pay a portion of the balance.
Not all Southwest Florida real estate agents appreciate the difference. You need to know what you have upfront. Most homeowners know this, but these last several years have seen all kinds of loan products. Not every homeowner is fully aware.
If you are a Southwest Florida homeowner in distress and you have a home equity line of credit (HELOC), please contact us today.

What are recourse loans?

A home loan or mortgage is secured by the property. A recourse loan basically means that the bank could both foreclosure AND sue for the balance due or deficiency.
A non-recourse loan is one that prevents the bank from coming after the homeowner. The bank can take what is gets in a short sale or foreclosure and that is the final remedy.
In Florida, the money obtained from loans used to purchase the property is non-recourse, typically. Loans to refinance, HELOCs, or loans to take money out of the property are typically recourse loans.
We have been able to negotiate away the deficiency on ALL of our short sales. If you have questions just call or email us - we will answer your questions fairly quickly.

What are deficiency judgments?

A deficiency occurs when the bank is owed more than it gets. Banks have numerous means to pursue on recourse loans. One result is that the bank can sue and obtain a deficiency judgment. Then the bank can garnish wages, seize assets, etc. This is a perfect reason why a short sale is better and why you need a REALTOR  and negotiator that knows how to keep you out of this mess.

Is it possible to just walk away?

It is possible to walk away. If you do this, do NOT pay anyone to help you. Just call the lender and let them know. But this is one of the worst possible choices you could make.

How long does a short sale take?

We tell everyone that it will take 90 days from the time of the offer to get an approval from the banks. Sometimes this happens in 60 days. Some banks are more organized than others and can even pull it off in 30 days.

As a short sale negotiator, how do you get paid when you represent me in a Southwest Florida short sale?

All fees are paid by the bank. The bank will forgive enough debt to pay all costs of the sale, including REALTOR® commission, termite work, title fees, etc.