12 business days after I originally sent the submission in. I do have a question though.

Here are the nuts and bolts of my deal....

1st mortgage payoff in full not getting shorted: $347k'ish
2nd mortgage with BofA original balance 125k and accepting $22,451

Purchase price: $400k
Realtor commissions 5%

It does not look like others I have seen. Basically it is a two page fax, with the first page basically being a cover sheet that says to carefully read the attached approval and that any unused padding must be added to the BofA payout.

Page 2, is basically a letter that reads like this:

This letter confirms Bank of America's agreement to accept your short sale offer on the above referenced loan on the following terms:

BofA agrees to accept $22,451.59 in certified funds as payment towards the above referenced loan. Upon the bank's receipt of $22,451.59 and a signed copy of the final short sale HUD-1 form the bank will release the lien and charge off the remaining debt as a collectable balance. Our recovery department will be in contact with you to make arrangements on this balance. Will report the account to the credit bureaus as "charged off" and show the balance remaining owed to Bank of America. Please note that any subsequent refund received by the bank will be applied to the outstanding balance of this loan.

Please confirm your acceptance of the terms stated in this letter by signing and dating the enclosed copy of this letter on the line below and returning the signed copy with your payment to the address stated above. If the bank does not receive this signed agreement and the payment specified in this letter by expiration date 2/18/2010 this offer becomes null and void.


Okay....back to me talking again..........

I only dealt with them via fax. I have never once talked to a negotiater and have no idea who to contact other than their main short sale 800 number. The only faxed requests to me were to move around some numbers on the HUD1 and a second request to remove a utility holdback amount that escrow put there.

There are no other instructions whatsoever. Most approvals I have seen have specific amounts that are to be paid out on the HUD1 and/or a requirement that a final HUD1 be sent to them for approval. It seems that they are not really looking for any more correspondence than this letter signed, and an overnight check to them with the HUD1 from closing.

Thoughts on the charge off language?

I have attached the letter here.

Views: 138

Attachments:

Replies to This Discussion

Sounds like a release of lien, but not of liability. Your client's still on the hook for the deficiency.
You have to get rid of the liability for your client. Based on this, BofA is coming after your client for $103,000. That won't be cool. Your client may have a different solution in mind.

I request the release of liability and give them language to report to credit bureaus as part of my package. Just so I can build that in as I negotiate with the negotiator. Sometimes it works sometimes it doesnt but I try to get the liability waived and reported a certain way.
The only bank I ever received a letter with language like this was from the WaMu charge off department. They are the collection dept. What state are you in? Is the first foreclosing? There is a common misconception in California that the first foreclosing will prevent the second from sending the deficiency owed to them to collections. It appears that the second plans to pursue the deficiency no matter what. You need to send your client to an attorney who will probably tell your client to foreclose and declare bankruptcy. The other option is that your client goes through with the short sale and hopes that Country Wide sell the note to a collection agency who is more willing to negotiate. I hope this letter is an exception and not a new rule.
Would it not be better to accept the short sale and then file BK instead of foreclosing and filing BK?

I am in the state of WA and yes, the first mortgage is behind as well and could start foreclosure proceedings. The seller is not living in the house anymore and has future plans to handle the deficiency and was completely prepared for it.

Tracey Martin said:
The only bank I ever received a letter with language like this was from the WaMu charge off department. They are the collection dept. What state are you in? Is the first foreclosing? There is a common misconception in California that the first foreclosing will prevent the second from sending the deficiency owed to them to collections. It appears that the second plans to pursue the deficiency no matter what. You need to send your client to an attorney who will probably tell your client to foreclose and declare bankruptcy. The other option is that your client goes through with the short sale and hopes that Country Wide sell the note to a collection agency who is more willing to negotiate. I hope this letter is an exception and not a new rule.
We have a couple of very good attorneys that specialize in short sales. We have them review all approval letters and then talk to the clients to make sure that they understand the ramifications. Keeps us from looking like we are practicing law.

Steele
Does anyone here think I will jeopordize the approval I currently have in place if I now start to play hardball on the deficiency/charge off language? They have showed their hand that they will take "x" dollars and have given us 45 days to get them the payoff and close the deal.

thoughts on this?
Negotiating is not being hardball nor jeopordizing your approval. It is a request, not necessarily a demand.

The question is what is best for your clients. If this is a landmine waiting to blow up in the future what is the approval really worth? Agents are starting to be be held accountable for short sales. This could blow you up as well.

Tim Schmitz said:
Does anyone here think I will jeopordize the approval I currently have in place if I now start to play hardball on the deficiency/charge off language? They have showed their hand that they will take "x" dollars and have given us 45 days to get them the payoff and close the deal.

thoughts on this?
Blow me up? I don't quite know what you mean by that.

I am doing and will always do what is best for my clients. It is the reason many of them do business with me. I have a profound respect for them and understand what they are going through.

Does anyone have any specific suggestions on how to go about this situation? That is what I am looking for. I have not had any contact with a negotiator on this file other than via fax. I do not know their name or phone extension.

thanks much
That is why we have a short sale attorney review this. He/she then makes the contact and the request in a non-threatening manner. Or you can make the request yourself. Worse case scenario, fax them a request to change the language along with an explanation of why you are requesting it. Pluck some heart strings.

The worst that they can do is say "no".

If the language stays open ended I don't know if any amount of disclosures will protect an agent should the clients get hit will a bill later on. Funny how they don't remember what we tell them. Easier to sue us.

Tim Schmitz said:
Blow me up? I don't quite know what you mean by that.

I am doing and will always do what is best for my clients. It is the reason many of them do business with me. I have a profound respect for them and understand what they are going through.

Does anyone have any specific suggestions on how to go about this situation? That is what I am looking for. I have not had any contact with a negotiator on this file other than via fax. I do not know their name or phone extension.

thanks much

RSS

Members

© 2020   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************