In 2006, I purchased my primary residency in IL for $360k. For 5 months Iâ€™ve been trying to sell my house, and finally got an offer for $312k. Unfortunately, the principle balance is still $360k (Iâ€™ve only been paying the interest).
I have an 80/20 loan. One loan is in the amount of $290k for Central Mortgage Co., and the other is $70k for CitiMortgage.
At the time of closing, I will have to walk in with $70k (loss in value, tax, etc). I donâ€™t have $70k to cover the difference.
Can I proceed with a short sale? Issue being the offer amount is greater than each of the loans. I can pay off the $290, but that still leaves $70k for CitiMortgage.
I feel a bit lost, and Iâ€™m looking for some advice.