I am working on a short sale where Bank of America is the second and it was discharged at a bankruptcy several years ago. Who has dealt with this? I am being told to move forward as a short sale but escrow states they should give us the deed of reconveyance. Any suggestions??

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I am in California and have done several short sales that had gone through a BK. Even though the 2nd has been discharged through the BK you will need to get a release of lien from BOA.  BOA wanted 10% of the loan amount in order to release the lien. I worked with the BK Dept at BOA. It only took a couple of weeks. Good Luck!

Some banks release the lien, I assume BofA did not and your title co said so. That means that they are still attached to the property but not the seller so they can try to recover money from the sale. Everything is the same except they cannot bug the seller for money (but they can stop the sale, etc.).

The lien is still valid even with the BK discharge.  Depending on how long it's been, BOA may have sold this to a collection agency.  I would call to find the status so you can negotiate a lien release from the appropriate party.

This is the problem with filing bankruptcy. The debt is discharged but the lien remains. I don't know why bankruptcy lawyers don't seem to go that extra step and obtain a reconveyance, but many do not. You will need to get a reconveyance. Bank of America probably doesn't even own the loan nor service it anymore, so you'll need to track down who has it now, and you'll need a loan number to do that, and the seller has probably thrown away all the letters, LOL. Not to mention, whomever has the loan will want $$ to release it.

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