I purchased a house lot for $25,000 cash in Florida in 2002. In 2006 I took an HELOC equity line for $114,000 out on the property. I have had business failure and I have had the property on the market for a short sale. I obtained a buyer for the property for the amount of $20,000. I stopped paying my mortgage in January 2011. The deficiency balance is $89,000.00.
Of course Wells Fargo has my financials as the short sale is scheduled for around June 30,2011
Wells Fargo wants me to sign approval letter stating that Wells Fargo does not forgive the debt and I need to call them within 10 days after the closing to discuss payment arrangments. Wells Fargo will accurately report short sale transaction on credit report and will not change historical payment record.
I am not in a position to make any payment arrangements and wonder if it makes sense to let Wells Fargo forclose on the property instead.
Your thoughts are appreciated.