Here is the situation- BOA approved an offer of 450K with 3% c cost credit on an outstanding 1st mtg of roughly 890K .
.
There is a second that was approved by Real Time Resolutions in the amount of 3K with a payoff
balance of 145k .
The BOA standard short sale payoff language allows the bank
o pursue for the deficiency.Has any one ever been successful
in battling with BOA on full release of lien and morgage without this potential to be pursued
for the deficiency?
My seller of course refuses to close. (Note; Home is not even in foreclosure.
even though he is behind over a year in payments.-he has it rented and collects the income of over 3500 /month in the interim)
My theory is BOA must realize that the wife never signed on the mortgage so the closing was actually done wrong.and loan cant be enforced.thru forelcosure.
It sure cant be an oversight after a year.
Seller would prefer to file bankruptcy rather than have such huge exposure.
I want to use that as a tool to try to renegotiate the terms of the short sale.
Question: With whom and at what level would you be dealing with to do this?
The negotiator? Theclosing dept? The short sale area manager?
Short sale manager last week told me it would take an act of congress or god to have that language changed by the legal dept.
I feel now may be the right time to play the bankruptcy card and use seller's attorney
to draft a letter showing seller actually made an appt to meet with him.
Position it so that I am not the " bad guy" but that under seller's legal counsel,
advise that if seller elects to go this route, the property will be tied up in trustee with bankruptcy court .
I have never had to go this route before becuase all my deals with other
banks were full releases.
Just got the letter on March 4th so I want to act on this asap.
Please help if you have dealt with this in the past.
Tags:
I have never heard of anyone being successful at having them change their verbiage. if the seller is wiling to file BK he can always include the potential liability for the house with the bk after the short sale. That way he will have a short sale on his credit versus a foreclosure. They must realize that short sale or no short sale he is still responsible for the deficiency unless he files BK or settles the account for 85% of the balance (that's what they asked my seller for). Good luck! im kind of on the same boat with one of my deals. They reserve the right but that doesn't mean they will. They could always do the SS and then if BAC tries to pursue them they file BK then. There is a chance they may not, so its worth doing the short sale in my opinion.
I have actually seen a BofA approval without the deficiency verbiage on it. However, the lawyer who negotiated it said the client paid $50k to get it removed. The seller was trying to protect large assets.
Yea, I actually talked to BAC and they were now saying they would take 40% of the balance to settle, they would remove the verbiage . But when the seller has no extra funds, that seems tough.
Armi Abiera said:I have actually seen a BofA approval without the deficiency verbiage on it. However, the lawyer who negotiated it said the client paid $50k to get it removed. The seller was trying to protect large assets.
Thx for your opinion as I share the same idea.
PaolaMarin said:I have never heard of anyone being successful at having them change their verbiage. if the seller is wiling to file BK he can always include the potential liability for the house with the bk after the short sale. That way he will have a short sale on his credit versus a foreclosure. They must realize that short sale or no short sale he is still responsible for the deficiency unless he files BK or settles the account for 85% of the balance (that's what they asked my seller for). Good luck! im kind of on the same boat with one of my deals. They reserve the right but that doesn't mean they will. They could always do the SS and then if BAC tries to pursue them they file BK then. There is a chance they may not, so its worth doing the short sale in my opinion.
My seller got tagged for a deficiency on the first deal we submitted (over a year ago). She wrote letters, yelled & screamed & BOA escalated to the legal dept. and "tagged" her file. (This was a 2nd home - a condo on the beach.) She claimed they had no assets & husband had lost his job & health problems - all true. BOA wouldn't budge, but then the deal died. Now, a year later (and 3 more buyers later) BOA approved her deal and there was no deficiency in the written acceptance - marked - "N.A." Of course we couldn't believe it. Of course BOA cut the two realtors to 2% commission each and wouldn't budge and then of course the buyers changed their minds at the last minute. - oh well....
I will try to email it to you!
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