Old Bank of America Short Sale Approval Letter
Before CA Passed CCP 5802e many short sale letters came back with approval language like this language we received from Bank of America.
(We always kept negotiating until we got better language)
Be on the lookout for these old templates.
They could come back to bite you if the law changes…
“Bank of America and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above. In addition, if this loan is covered by mortgage insurance, the mortgage insurance company may reserve the right to pursue the seller for the deficiency based on the terms of the mortgage insurance policy Furthermore, there may be tax consequences associated with entering into a short sale. The seller is encouraged to seek the guidance from an independent tax advisor, and/or an attorney, before proceeding with the short sale.
If this short sale is contingent upon Bank of America and/or its investors receiving a promissory note, we will reserve the right to collect the full amount on the new promissory note which may lead to us pursuing a deficiency on that balance should the need arise. If the short sale does not close, then we will pursue all remedies under our note and mortgage. ”
So What Should You Do if you lender does not release the deficiency in writing?
- Get a Lawyers Advice
- If you have time before the foreclosure keep negotiating.
- Spend time or money on a lender audit or lender liability campaigns including RESPA request.
Also make sure someone explains the tax consequences to you in writing on Brokerage or Legal or Accounting Firm letter head.
If you would like to have a lawyer on your team and be referred to an approved Realtor in your area…. fill out his form.