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Is this typical wording of a Deed Release and Reconveyance for an approved short sale by Bank of America. My client received a copy of this Deed of Release and asked me why it states the debt remains in full force and effect when it contradicts the wording in the Loan Approval on his Heloc settlement.
The Deed of Release & Reconvy. states: The debt secured by the deed of trust described above has been partially paid. Therefore, this release and reconveyance does not constiture a satisfaction of the debt. Absent a separate agreement in writing providing otherwise, the debt remains in full force and effect. This release and reconveyance serves only to relase the lien of the deed of trust upon the property described therein.
This is wording from is 2nd lien approval letter: "
Bank of America agrees to accept $1500 as payment towards the above referenced loan. The payment can only be made with a wire transfer to Bank of America. Upon the bank’s receipt of $1500 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 an uncollectable balance. Any deficiency balance will be waived and the appropriate 1099 form will be sent. Bank of America will report the account to the major credit reporting agencies as “Paid in Full for Less than the Full Balance”, and show no remaining balance owed to Bank of America. If there are additional proceeds after the first lien is paid in full and there are no other liens ahead of the above-referenced loan, the additional proceeds will be added to the above amount.
We will continue to report your account to the major credit reporting agencies. Although a short sale will have a negative effect on your credit, by completing this transaction, you may qualify for financing for a future home sooner than if you do nothing and allow your home to go through a foreclosure. Credit scores are determined by the credit bureaus and not controlled directly by Bank of America beyond our commitment to accurately report the status of all our customers. Visit http://www.ftclgov/bcp/edu/pubs/consumer/credit/cre24.shtm to learn more about credit scores. "
Should the Approval letter be recorded?