Replies to This Discussion

Permalink Reply by Debbie Franklyn on July 23, 2010 at 8:55am

Hi Shannon:

In my case--I am in Anaheim, CA, Indy approved the 1st with $7400 I think to the 2nd ( B of A) and B of A wanted over $14,000. I thought the nego wanted to be difficult, so in Equator, I countered back FIRM NO, and explained that 10% of the loan balance is "tranditional", therefore what Indymac offered had to be the number that B of A had to accept. I sent my messages to everyone possible in Equator and private email to the nego. In the end, they agreed to our #s. They did not give us any more hassle.
You could ask the seller to bring in some cash or sign a promissory note if that does not work. Hope this helps.

Permalink Reply by Shannon Jones on July 23, 2010 at 9:03am

Ours is a weird loan with BofA I think because it's not through equator. It's the home retention office in North Carolina and everything has been via fax. In this case, Indymac has only approved $3K to go to BofA (and we'd originally asked for the higher amount)... I might be able to come up w/extra cash from the buyer and/or seller or promissory note, but the issue is the charge-off language, basically saying that the bank will be seeking to collect the balance. It's not the BofA language I've seen in the past that says they reserve the right to pursue a deficiency judgment. This one just comes out and says they WILL be pursuing it.

Permalink Reply by Debbie Franklyn on July 23, 2010 at 9:54am

I have not had that experience. Contact Ben Benita here in the forum, he has lots of experience and can be helpful.
He has written a book also being sold by Amazon on the subject - which we all need to buy.

He is in Virgina I think, but you should find him on the network here. There are so many other agents here that might have your experience. Wish I could be of more assistance.

Permalink Reply by Stephanie Lim on July 24, 2010 at 3:07am

Shannon--sounds like a BOA HELOC. That has been my experience with their HELOC process/deficiency language as well.

Permalink Reply by Shannon Jones on July 26, 2010 at 6:20am

Stephanie Lim said:

Shannon--sounds like a BOA HELOC. That has been my experience with their HELOC process/deficiency language as well.

Yes, it is a BofA HELOC... Any success in getting them to change that language? Anyone?

Permalink Reply by Jean Beymer on July 27, 2010 at 11:44am

My experience with BofA 2nd liens are that they will release the lien but will go after the defiency. Presently, negotiating a BofA large 2nd...$185K. Bank insists on $25K cash to release the lien and then a note for the balance. They said they can sell the note for 10 cents on the dollar ....cash! So why would they take any less from the seller. We are trying to raise the additional cash...gone back to the first mortgage and also to the buyer. We might not be able to pull this off.

Also, you made the comment about letting this go to foreclosure because you are a non-recourse state. I think the non-recourse only covers the first lien that is foreclosing. The second is not foreclosing. I would have the seller seek legal opinion on this point. My feeling is if it goes to foreclosure then you are done with the first...but the second "could/would/will" pursue the seller for the entire balance plus penalties. I would continue the short sale. I have been able to get some favorable terms...but not able to get them to change the language. The seller's also had their attorney's call without any luck.