I have a few questions
My home is currently on the market as a short sale in California.
I had two initial loans with GMAC - a first regular loan and the second was a HELOC - both with GMAC. Two years ago - I refinanced the second (HELOC) with Wells Fargo in order to get my interest rate lowered. So now I have my large loan (1st) with GMAC and a refinanced WF HELOC loan.
I am completely up to date and have never missed any of my mortgage payments - we are expecting our second child in October - we are having a hard time paying our mortgaga and we live in too small of a place that we paid $450K for - it is on the market for $265 because property values have declined so rapidly - we cannot sell and buy a home to fit our family - we are doing the short sale to get out and be able to rent a home that will fit our family and for less than what we were paying for our mortgage.
Is there any risk of the short sale and any deficiency in amount that WF receives in the short sale since it was a refinanced HELOC (not used for anything but reducing interest rate)? Will they be able to go after me for the difference? I've read a lot about refinanced loans and am worried. I would like some facts on this, as I have gotten a lot of opinions but no one seems to know the hard facts on this....
Many people have told me to quit paying the mortgage since I am selling anyway - what could happen if I quit paying my mortgage at this point? Would it be beneficial if I only decided not to pay the first...or...?? Again - if anyone has FACTS on this ...not just opinions it would help a great deal...I have a nearly perfect credit score, but know that it will be hit hard with a short sale...so at this point, I am not too worried about it being hit even harder by not paying...my big concern is them coming after me for money after the short sale.
My goal is that I want to be free and clear of any loans/mortgages/home debt once I sell!
any help would be appreciated!