BOA Accepts Short Sale but with collectable balances verbiage in the letters

I have a listing that I have an offer for 80k cash.  The BPO came in at 60k.  BOA wants my seller to sign the 1st and 2nd acceptance letters stating that they are writing them off as collectable balances.  My seller has no interest in doing that.  The negotiator wont change his stance or alter the letter at all.  Is BOA doing every short sale this way?  

We have been at a stand still for a few months.  I got a call last week from an agent requesting to do another BPO.  We went down there and now this BPO has a value of 45k.  The agent said it was a REO BPO.  There is still not a sheriff sale date.  And Minnesota has a 6 month redemption period.  Who would have ordered this BPO and what is the purpose?      

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Replies to This Discussion

Permalink Reply by Steele V. Propp on January 28, 2010 at 10:25am
Yes, these are the two methods of tax forgiveness. The Act itself and insolvency.

One thing to note for the future is the increasing number of "walk aways". These are people who can afford the mortgage but choose not to pay because the value has gone down. These people may be in for a surprise when that 1099 comes rolling in as most states don't have the anti-deficiency statute that Minnesota, California and a handfull of other states enacted.

As always only an accountant should be showing something as complicated as insolvency. Believe me, the IRS checks that very carefully.

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