Forum

B of A - Short Sale - Letter of Forgiveness

Posted by Debbie Dunham on March 6, 2011 at 2:48am in Short Sale Discussions

I am the seller with a Short Sale (FHA) involving B of A.  I had been instructed to request a "Letter of Forgiveness" from B of A with regards to the deficiency amount.  I finally got a reply from my latest request which stated:  "HUD doesn’t send out deficiency letters. As long as the sale is done in good faith, HUD won’t pursue, however in case where HUD finds issues they will pursue the seller(s) for the deficiency."  In your experience, does this tend to hold true?  We are schedeled to close in the on or before 3/16.  Thank You!

Debbie

You need to be a member of Short Sale Superstars to add comments!

Join Short Sale Superstars

Email me when people reply –
Follow

Replies

  • justin.hanke March 8, 2011 at 8:51am
    I agree with Bryant, it's rare. I've only seen it happen one time, a very long time ago. On the off chance it was a HAFA short sale backed by Freddie, you are protected. From the HAFA guidelines: "Additionally, with respect to a HAFA Short Sale or HAFA Deed-in-Lieu, the Servicer, for itself and on behalf of Freddie Mac, must waive all rights to seek a deficiency judgment and may not require the Borrower to sign a promissory note or make a cash contribution for the deficiency."
  • Debbie Dunham March 8, 2011 at 8:46am
    Yes, the loan was an FHA loan. Thanks for your response.
  • Bryant Tutas March 8, 2011 at 8:27am
    Debbie. There are never any guarantees but my personal experience is that this is true. Was your loan a FHA loan?
This reply was deleted.
********************************** like buttons ************************