BoA Approval Letter says they will Report Short Sale as "Charged Off" and Plans to Pursue Deficiency
I just received a horrible short sale approval letter from BoA with the following verbiage:
1. The owner of your mortgage note, the mortgage insurer, if your loan is covered by mortgage insurance, Bank of America, N.A., and their successors and assigns reserve and retain the right to pursue collection of any deficiency following the completion of the short sale, unless otherwise prohibited by law.
2. Bank of America, N.A. will report your existing account to the credit reporting agencies as "Charged Off," and with the remaining balance outstanding. If the remaining balance on your account is pursued for repayment, we may report a new account reflecting that outstanding balance to the credit reporting agencies.
...This is a for Chinese Drywall home that is uninhabitable and we are looking at a $150K deficiency.
BoA is not asking for a promissory note or cash at closing... seller's have no money.
Has anyone ever dealt with verbiage like this or have any advice?
Replies to This Discussion
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Permalink Reply by Chris McGee on
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Michael I have received this wording. I countered it and they changed it, no problem. Have you tried to do so?
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Permalink Reply by Michael Valdes on
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not yet... how exactly did you counter and with what verbiage did you use that got approved?
.. this is through Equator
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Michael I am so sorry! As I was typing my response to you my computer froze up and I'm just now back on-line. Just as the others have said, I simply went back to the negotiator and asked for the deficiency waiver and "settled for less than full amount" wording. It's amazing how sometimes all we have to do is go back and ask for something else and we get it for our homeowners. Other times it's very hard and sometimes impossible! Good luck.
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Permalink Reply by Konstantin Akimov on
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It has been a few months since the last posting on this thread but it is the most recent information i can find with such approval letter wording. Last night, i have received a similar letter wich contains both of the points stated above and wanted to know if anyone had any advice about writing counter letter and asking for deficiency waiver. please help.
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Permalink Reply by Michael Hayley on
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I agree, it's horrible. When you talk with your negotiator, did BOA recommend approval to the investor? Or, is BOA the investor? Surely they do not want title to a chinese drywall home?
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Permalink Reply by Chris Black on
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Hi Michael,
I just reviewed one today that started with this language. Bank of America changed the language to the standard deficiency waiver in exchange for $225. I have uploaded the series of approval letters for your reference.
For what it's worth, this particular short sale resulted from an original Countrywide 80/20, with original loan balances of $88,300 and $15,000, respectively. Best of luck.
Chris
Chris Black
Attorney
Winged Foot Title, LLC
8695 College Parkway, Suite 2350
Fort Myers, Florida 33919
P: (239) 985-4142
F: (239) 425-3518
Blog: www.homeclosingprocess.com
Twitter: www.twitter.com/wingedfoottitle
FB: www.facebook.com/wingedfoottitle
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Permalink Reply by Justin Sciranko on
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Michael, I just received this verbiage about 2 weeks ago from BofA. I emailed back my negotiator and asked him for the none deficiency approval and showing on credit as settled in full for less. He took the request back to the end investor and within 2 hours I had a corrected approval. This was for an owner occupant short sale where sellers had no money. Best of luck. Justin
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Permalink Reply by Janie Howard on
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I look forward to some insight on this as well as I just received the same identical approval letter from BofA. My understanding has been that this is boilerplate and that I should go back to the negotiator and state that the seller has no money and will not agree to be pursued for a debt they cannot pay - in my client's case, it amounts to about $192k - they are heading to retirement years and are no longer employed in their professional field but now are only making wages to keep food on the table. Look forward to Superstars giving us some direction!
P.S. I see fast replies to this already posted. Thank you so much.
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Thanks for your replies... I have countered the negotiator in Equator using similar verbiage that was in Chris Black's approval letter and will post the outcome here.
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Permalink Reply by Eric Mieles on
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I just received one as well and will be contacting the negotiator however I'm curious if anyone thinks that there is something going on where they keep issuing these approvals with this verbiage.
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Permalink Reply by Robert A. Carrino on
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Good grief I hope this does not become a trend with them!!
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You all will not believe this... within 3 hours of posting this blog yesterday, I received a call from a member of the Bank of America Social Media Team who stated that they saw my blog and wanted to help... I was dumbfounded!
He said he was going to try and help resolve my issue and that I should hear from someone by the next day.... I had also emailed the negotiator yesterday through equator that I wanted the verbiage changed on the approval letter and gave them the same verbiage that was in Chris Black's approval letter.
Today, I received an updated approval letter with the bad verbiage removed :)
I am still speechless... I guess the banks are really paying attention to this site which is a good thing!
Thank you Short Sale Superstars and BoA Social Media Team!
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