Is it possible to owe this much? wholesale/shortsale divorce deal

[Michael Lerch]

Apparently I have the best luck with finding the most backwards upside-down odd deals. *laughs*

The lady filed for divorce and can't afford the monthly mortgage payments by herself. She's owned it since 1995 when she bought it for $76,000 according to the property/tax assessor.

She says she owes $114,000! I was thinking she was pulling my leg so I asked her about it and she said one is the first mortgage, and a 2nd was a home equity loan they used to fix up the home with new roof, windows, and water heater about 4 years ago (2008), but the home was only worth $105,000 according to zillow in 08, and it's comping out to around $75,000 today! Is this really possible that she could get loans for more than the home is worth? If so this has potential shortsale written all over it.

Any tips or advice on how to pursue this deal?

Thanks

[Don Konipol]

The mid decade was the era of the 120% of value loan. Some properties encumbered with three (3) mortgages. Very possible. short sale can be a long, frustrating process, but seems to have speeded up lately.