We have been trying to sell our home for almost two years now with no luck. We have tried by owner and with a realtor. We know we can sell it for more than what is owed on the lst mortgage but just cannot get enough to pay off the home equity loan. We need to move in order to take care of my 84 year old mother and don't know what to do. We did contact the bank and asked if we could take a personal loan and pay off the home equity loan so we could get the house sold but they said there was nothing they could do. We told them we would continue to pay the loan if we could just somehow disattach it from our mortgage. It doesn't make sense to ask for a short sale for the 1st mortgage because we know that would get paid with the sale. Can you ask the bank who holds the home equity loan to do a short sale?? We need to move by August. We currently owe $141,000 on the 1st and $27,000 on the home equity line. We have a beautiful home and everything is new including roof, siding, floors, lighting and granite countertops. We have had about 30 people come and look at the home but they are all looking for cheap homes and then they want you to pay a large portion of their closing costs which we cannot afford. According to the realtors, we have our home priced where it should be so we don't know what to do.

The best you can do is keep explaining the situation, keep asking for special consideration. If the bank is concerned about getting payments when they hold security they will be MORE concerned about getting payments when there is no security - such as a personal loan.

I think you have to keep knocking on doors. There is no easy solution.

In some States there are programs for people who cannot meet their mortgage payments due to lost income (unemployment) or similar financial circustances, not simply over extension and inability to pay.

Have you asked the mortgage company about State programs?

Both banks who hold the first mortgage and the equity loan may need to agree to a short sale. Have you consulted with a Real Estate Attorney regarding this yet? There are usually varying laws concerning real estate from state to county to city. They would know the laws that pertain to you specifically.