Boiler Plate Letter says May pursue deficiency! Seller wants release in writing!
Short sale approved, no cash required from seller, no promisory note required. But the language remains "BofA may pursue deficiency. Its in the boiler plate letter shown on the site.
Has anyone negotiated this language and gotten in writing that they will not pursue a defeciency? And by the way, how will they characterize the pay off to the credit bureaus? Can we get this in writing too? If so.... please tell how in detail!!!!!
Replies to This Discussion
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Permalink Reply by Denise Forsyth on
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If you are in California, a trustee sale state, and this is the lst mortgage then if they decide to approve a short sale, I am pretty sure they can't go after them. If it is a second, then they can. The only way they can go after the seller's for the deficiency on the first is if they do a judicial foreclosure. A lender has an option to go after the collateral or pursue the mortgagee. " BAC Home Loans Servicing, LP and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above." I think the unless agreed otherwise or prohibited by law my save you. I would call and attorney to make sure If they accept money from the the sale, I believe they have exersized their option on the collateral. Has there been a NOD filed? If so then that is your clue that they are going after the property. However, Bank of America is doing some really strange things lately. I had 1 fall apart last week because we asked for a 8 day extenstion for a buyer to install a septic tank, they had already signed their loan docs and put money in title, they came back and demaned 20,000 for the property and declined our sale.
I would call them and ask them what the heck they mean and then call an attorney to be on the safe side. Good luck
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Permalink Reply by Marty Hackworth on
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The last B of A short sale I closed came with a letter claiming they reserve the rights to pursue a deficiency. I honestly called my negotiator and requested a new letter removing the deficiency rights. I had a new one in ten minutes. What state are you in? Is the loan a purchase money first?
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Permalink Reply by Jilly on
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Thanks for the input. I should have said this is a California, refi loan (not purchase money).
It is a shame that there are so few good reasons for a borrower to do a short sale over a foreclosure.
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I would still call and tell your negotiator California is a non-deficiency state and request a new letter. If that doesn't work, tell her the seller will not close without it removed. The simple request worked for me recently in California.
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