Does a Deed in Lieu Prevent a Security Clearance?
I've got a military client and I've been working on a short sale with him. Bank of America won't budge on the price and a new attorney who just started negotiating the short sale suggested a deed in lieu. She has no idea whether or not a deed in lieu will hurt the client's chances of getting his security clearance. Does anyone know if the seller can do that and still get a security clearance?
Replies to This Discussion
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Permalink Reply by John E Bonnett on
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Glad you asked. Remember, a DIL pays no commission, so it behooves you to work more closely with BofA. They have a great resource center, https://agentresources.bankofamerica.com/ShortSale that you should utilize completely. I'm surprised you say BofA 'won't budge' yet I've not heard you mention the use of Equator, the only means of communication BofA will accept. Is your attorney or you certified in Equator's use? I've found BofA very reasonable to work with and they are paying a client of mine a $19,000 moving allowance at closing Nov 8, 2012. They also reduced the price on this property from $349,000 to $323,000 and finally accepted a buyer's offer of $316,000. You and your client have much to gain by working more closely with BofA. Be sure your lawyer/negotiator has a successful record of closings with BofA and is gold or platinum certified with Equator. If not, find someone who is.
Incidentally, a DIL is a dignified foreclosure and is far less desirable on one's credit record than a short sale. The security clearance depends on the policy of the company and level of information involved. Sometime a demotion or transfer results from a lowered credit rating.
Good luck,
John Bonnett
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Permalink Reply by Bryant Tutas on
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The person who is concerned about their security clearance needs to talk with their supervisor. No one else can answer this question for them as each clearance is different. I would put this in writing to the seller and be sure they sign off that you have advised them to speak to their employer about security issues.
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Permalink Reply by Jeff Payne on
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Valerie, the military has relaxed its rules on this but your client MUST report this to a superior officer immediately. Full disclosure for sure. Is this a VA loan?
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Permalink Reply by Lacy Summitt on
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Your client should contact base legal or his CO for further advice regarding his security clearance.
Good Luck!
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Permalink Reply by Cindi Infiesto on
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Here's what I know.... and this was my son's situation. He went overseas (Air Force) and thought he had worked out his cell phone plan with Verizon. First bill was $8000. he argued with them but couldn't work it out. It went to collections AND he paid it in full. THIS Verizon bill collection stopped my son from getting his top secret security clearance. Incredulous, I called the CEO of Verizon, who was an ex-Navy man and long story short.resolved the situation and got it removed from his credit report. I guess you have to read the tea leaves here.. you will not be able to get a deed in lieu removed and if something as simple as a cell phone bill prevented the clearance - it would seem that a deed in lieu would certainly. I hope this story helps.
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I agree with John, I have never had an issue of value wit BAC. They are very easy to work with and you can argue a bad bpo which many agents are unaware of. I find BAC is the only one nowadays that makes it easy to state your case. I have always heard that DIL and foreclosure can absoulely affect security clearances for many companies including the military. Keep working with BAC.
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Permalink Reply by Debora Nichols on
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If you are not using Equator I can only assume that this is an FHA loan. In that case you probably have to call in for updates. Every time you call they should ask the question in the borrower or their spouse active military in the last 12 months. If they are not asking then you should bring it up. My clients are not military so I don't know what they will do different. But I think it is worth asking.
I also agree he needs to speak with his CO and military counsel.
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From my knowledge a security clearance is most definately affected by credit. A DIL is much worse on credit than a short sale, escpecially if they can do a HAFA short sale as that gets reported differently.
We just had B of A counter a $199,000 offer with $280,000. There is no way the house is worth $280,000. B of A wouldn't budge.
The seller must determine for himself what to do, but I'd put the house back on the market and wait for a new new offer and a new negotiator. Protect yourself and advise in writing that he needs to contact his superior regarding this.
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Permalink Reply by Loren Hoboy on
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This question needs to be run up the chain of command. All security clearances are not the same and each have different requirements. The Seller needs to ask the command.
Regards,
Loren Hoboy-Realtor
Your Local Expert
Central AZ Real Estate
[email protected]
623-688-0004
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This is the best answer for this question. Period! A security clearance may or may not be affected depending on the situation. A large portion of my business is military business and I know from first hand experience that some are affected and others are not affected. The proactive seller is the seller that informs their superior immediately.
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Permalink Reply by Sharon Molnar on
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It absolutely can. Why in the world would anyone want to do a DIL when you can do a short sale. If this is a VA loan your seller can call VA's Home Loan Guaranty Program to intercede with the servicer. The number is 877-827-3702. If that doesn't work have him contact USACares.org and have him open a claim. This if for Military personnel only.
But, you left much of the story out.
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