AboutStephanie Frost Expertise I can answer any general questions about the buying and selling process in the state of Florida such as:
How to market your home
Why choose a REALTOR?
How do I find a REALTOR?
Questions from first time buyers
Should I consider buying or selling without a REALTOR?
Helpful tips for home sellers
Helpful tips for home buyers
Tips for home sellers selling without a real estate agent(For Sale By Owner)
Questions about the Florida real estate market
Questions about horse specific properties such as farms, equestrian complexes, etc.
Experience I am a licensed Realtor in the state of Florida. I specialize in residential and equestrian properties.
Organizations National Asociation Of Realtors
Florida Association Of Realtors
Question QUESTION: I have a townhouse in Bonita Springs, the home is 100k less than what I owe. I owe 298k with a HELOC for 50K. I do have PMI for the mortgage. I have the home listed at 299k. If it ever sold I would need to walk into the closing with money i don't have. If I handed over the keys to the bank what would happen to the HELOC. Would I have to claim bankrupcy. I pending a disability from SSI and I have no income other than a small pension.
ANSWER: Lois,
Only hand over the keys as a last resort. Foreclosure is not a pleasant thing. Neither is bankruptcy. But you might consider doing a short sale, if you can get your bank's approval. A short sale is when your mortgage holder(s) agree to allow you to sell the property for less than what they are owed. This might be a viable way for you to get out from under payments you can no longer afford, without having a foreclosure or a bankruptcy on your credit record.
I suggest that you consult your real estate agent about short sales, and contact your mortgage holder to see if they are willing to approve you for one.
Stephanie Frost
www.StephanieSellsOcala.com
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QUESTION: I was under the impression that I couldn't do a short sale because of the Heloc. Does the PMI help me in any way or just the bank!
Answer Both of your mortgage holders must agree to allow a short sale. That means both the primary lender and the holder of the equity loan. It is in the secondary mortgage holder's best interest to allow a short sale, because they won't get anything if you allow a foreclosure to happen. Talk to your agent.
