Replies to This Discussion

Permalink Reply by Blair Stacks on June 18, 2012 at 3:43am

Jeffrey, has this gone to a collection agency?  If not, what's the name of the company that's handling it now?  If it was recently sold, it may be possible to get BOA to pull it back, especially if it's to a collection agency.  I'd go back to BOA and see if they can help, if not get on BOA's twitter feed and ask them to intervene.

Permalink Reply by Marcy Spieker on June 18, 2012 at 3:43am

The most obvious is that if the borrower files for bankruptcy the Jr lienholder gets nothing.  I would think that $6000 would beat nothing.

Permalink Reply by Kevin - Greenville, SC on June 18, 2012 at 3:50am

HAFA allows up to $8500 now towards a 2nd.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on June 18, 2012 at 4:04am

Remember, in CA, if the lender approves the Short Sale, there is NO ability to go after the deficiency.  If they do not approve a short sale, they can go after all of it.  It sounds like this loan was likely sold to a "bad debt buyer" for pennies on the dollar so they would be best to approve a short sale and get something ($8,500) now, rather than nothing later (if borrower eventually files BK).  Also, in CA, they cannot request / require a Promissory Note as a condition of short sale approval.  I suspect if this "very small company" does not know what HAFA is, they very likely don't know about these laws (SB458 & SB931) as well.

 

Because of these new laws, many lienholders are selling the notes to unsuspecting buyers.....

 

Kevin is right - see if BofA will take the loan back and settle it in your short sale.

 

Best of luck,

Thom Colby

Broker

Palm Desert & Newport Beach CA

Permalink Reply by joe beauchamp on June 19, 2012 at 8:14am

If this is non-gov't 1st, HAFA rules have changed - my seller just went up from the $3K to $6900 and can use that to pay closing costs - and, as mentioned, the $6K is not $8500. So, you have some more wiggle room.

Collection agency mentality is often horrible - lottery mentality - go for broke. Sometimes going to higher management can get results. You might try reasoning with higher management. Maybe mention that the seller plans to do a BK after the sale to start fresh.