Short selling an investment property
Looking for some help from folks who have been through short sales in non-recourse states.
Here's the scenario:
- The subject property was purchased as a primary residence in North Carolina back in 2008. There's is a first mortgage and a HELOC.
- The home has been underwater ever since 2009 and so the loans have never been refinanced due to negative LTV.
- The proceeds from the sale will cover the entire first mortgage (non confirming), but only portion of the HELOC.
- North Carolina is a non recourse state and the loan agreement on the HELOC makes no mention of full recourse.
- The home was converted to a rental property back in 2013 and has been a rental ever since.
My question is what is the owner's liability during this type of short sale? Is it accurate that there's no recourse or personal liability because NC is a non recourse state? Does it matter that the home has been converted to an investment property?
Thanks in advance for any help, advice, or guidance.