BoA Approval Letter says they will Report Short Sale as "Charged Off" and Plans to Pursue Deficiency

I just received a horrible short sale approval letter from BoA with the following verbiage: 
 

1. The owner of your mortgage note, the mortgage insurer, if your loan is covered by mortgage insurance, Bank of America, N.A., and their successors and assigns reserve and retain the right to pursue collection of any deficiency following the completion of the short sale, unless otherwise prohibited by law.

2. Bank of America, N.A. will report your existing account to the credit reporting agencies as "Charged Off," and with the remaining balance outstanding. If the remaining balance on your account is pursued for repayment, we may report a new account reflecting that outstanding balance to the credit reporting agencies.

...This is a for Chinese Drywall home that is uninhabitable and we are looking at a $150K deficiency.

BoA is not asking for a promissory note or cash at closing... seller's have no money.

Has anyone ever dealt with verbiage like this or have any advice?

Views: 1247

Replies to This Discussion

Permalink Reply by Michael Hayley on February 28, 2012 at 9:09am

WOW! so cool. Congratulations! You rock. 

Permalink Reply by Chris Black on February 28, 2012 at 9:58am

Nice.  Great to know that they are listening.  Congratulations.

Permalink Reply by Bryant Tutas on February 28, 2012 at 11:42am

Very cool Michael. the BofA social media team is awesome. I have spoken to them many times and they do monitor this site. Did you speak to Don Pierce? We actually have reps from BofA and the other big lenders that are members of this site.

Permalink Reply by Janie Howard on February 28, 2012 at 11:50am

Steve Fox of social media team just called me and is helping me with this file too!  Yes. the BofA_Help Twitter team are ROCK STARS!  They have helped me previously where it really seemed there was no hope and got the file back on track and to a safe landing.  I cannot recommend them enough.  Now if Wells and Chase would just get on board with that type of customer assistance...

Permalink Reply by Konstantin Akimov on May 15, 2012 at 12:36am

Hi Michael, I have recently joined this forum and wanted to find out more about the process you have followed after your received your short sale approval letter.  what helped and what didn't?

Permalink Reply by Brian Brumpton on August 21, 2012 at 9:38am

Just got an approval letter today. Not really loving the roller coaster ride with this file. We were reassigned a new negotiator after the previous and his supervisor just couldn't get it together to actually get the file submitted to the investor for approval. My seller agreed to a cash contribution at closing.  The negotiator called last week to say it had been approved and the seller contribution was sufficient for release of deficiency.

She was apparently promoted and now we have a letter stating they are going to reserve the right. There are two loans, both were purchase money loans, and the letter doesn't state which loan is “reserves the right” and which loan(s) will be reported as “charged off.”

 

Bank of America is one of the best for processing short sales, however, it all depends on who's desk your file lands on. Can anyone share what process/verbiage they've used to get their letter(s) changed? I've already messaged the negotiator through equator and had the short sale line submit a request. Any other ideas or advice is greatly appreciated.

 

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