3rd mortgage or other options

riprod · Joined: 09 May 2010 Posts: 1

Hi All,

Ok, here's the deal. I have 2 mortgages and an equity line.
One is for our primary residence where I have a loan of $170k and an equity line of $220k. Totaling $390000. The house value is about $320k. so I am upside down about $70k
The 2nd loan is for $98k and the house has a realistic sale value of $135k.
So both included, I am down about $35k.

I have about $150k cash in the bank but am hesitant to pay down the equity line incase they close it.

Now, we really want to move to a neighborhood with better schools for my kids. We found a great short sale for $600k.
I already have people willing to rent my home for enough to cover the mortgage and equity line. The 2nd home is my wife's parents house, that they pay for but in my name.

Is there anyway I could get another mortgage for this short sale. I was told by broker that I don't have a chance, even with the 20% or more that I can put down because I am upside-down.

Anyone got any ideas ?

A second thought is that both my house and the short sale is though the same bank, Wells Fargo. Do banks every have any real flexibility with their negotiations. For example, I am sure that most business people would rather have a $390k debt owed to them, rather than a $600k debt. Would they take my house, so I could take their's and pay the difference ? How do I even approach them with something like that.

Also, would selling my 2nd house to my wife parents help the cause.

PS. my credit score is excellent at about 790-800 and I can afford the 3rd home, especially with the rental income.