BOA trying to collect $1600 in exchange for deficiency waiver? Seller has been Ch.7 discharged already...is this breaking the law?

I have a BOA cash contribution case, the past several deals BOA has never tried to negotiate a release of waiver for cash...to add insult to injury, the seller does not owe this mortgage anymore do to a Ch 7 discharge.

I have provided a copy of the discharge to BOA, but they are ignoring it and attempting to put the seller in a tough position, and IMHO breaking the bankruptcy protection laws.

The seller wants to avoid a foreclosure, she has written a letter of explanation on why she cant afford the $1600 cash contribution, and has no desire nor can I recommend her to sign an approval letter with deficiency language.

Any ideas guys and gals?

Just when I thought BOA were becoming the good guys...they pull this!?

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Replies to This Discussion

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on May 10, 2012 at 1:04pm

Get the attorney who handled the BK to write a letter to BofA regarding their request.

Permalink Reply by Keji Ogunleye on May 10, 2012 at 1:17pm

Is it actually true that you are not responsible for the mortgage after Chpt 7 discharge? If that is true why are you doing short sale? The seller is still fully responsible for the mortgage... As suggested by Thom ask the attorney to write a letter to BoA..

Permalink Reply by Jeff Payne on May 11, 2012 at 1:26am

Good question Keji, why would the seller care about a short sale if they are not responsible for the mortgage. I dont deal with BK often but it does not seem right that the mortgage disappears if they filed BK

Permalink Reply by Marty Macisso on May 11, 2012 at 2:38am

After Ch.7 Discharge, the seller is 100% released from the mortgage debt, it does not exist....a short sale only avoids a foreclosure....so there is no reason nor benefit to do it if they face any chance of deficiency or a contribution.

Lenders are allowed to ask them to reaffirm a debt post BK...its legal, but collection tactics are not. Its a slippery slope...

Permalink Reply by Wendy Rulnick on May 11, 2012 at 1:29am

Maybe one of our attorneys on the site can pipe in here!

Permalink Reply by Keji Ogunleye on May 11, 2012 at 2:12am

I have dealt with so many clients that for some reason or are misguided that once they file bankruptcy the mortgage will disappear , and can still stay in the house.. many found out shorty after discharge that mortgage does not disappear, and lenders resume the foreclosure process that was temporarily stopped because of BK filling...and now they want to do short sale..big headache dealing with lenders especially BOA....You know the lenders know borrowers paid big money to BK attorney to file BK.... so they are trying to get some of that money.. don't have money to pay mortgage but can pay attorney for BK...

Permalink Reply by Marty Macisso on May 11, 2012 at 2:36am

Actually, I simply spoke to the negotiator and asked her to get up and discuss it with a supervisor, ten minutes later the condition was cleared. It is a violation of BK protection or at least enough not to play around with.

Funny thing, 1 day after I posted this I did get a call from the BOA social media team...by then the condition was cleared but they are there to help for future reference

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