One question that many California short sale experts frequently get asked is if it’s possible to do a short sale with a home equity line of credit (HELOC). Most short sale experts will tell you that, yes, it is possible to short sale your home with a HELOC, but it’s not quite that simple. If you do short sale your home you will more than likely be liable to reimburse the bank for the home equity line of credit. It’s no different if you lose your home to foreclosure either. Whenever you take money out on a home after it is purchased, you are responsible for that amount whether you do a short sale or you are foreclosed on.

If you are concerned about short selling with your HELOC, it helps to work with a realtor that is a short sale expert. They may be able to get a portion of the balance forgiven or get the other lender to assist in paying for the home equity line of credit through the sale of the property. The home equity line of credit isn’t like a mortgage in the sense that a HELOC is a loan that is against you personally, not against your home. If you work with an experienced short sale expert that know what they are doing, they should be able to successfully take some of the money from the sale of the property and put it towards the HELOC to reduce the amount you are responsible for paying back.

There are many real estate agents out there that claim to be experts in short sales and home equity lines of credit, but do your homework before you commit to working with one. Ask questions, ask for references and explore that realtors history to ensure they are a short sale expert. It can mean all the difference in you paying back a significant amount of money on your home equity line of credit.