A few colleagues have asked about recent Bank of America short sale approval letters. In the approval letter under “what this means to the seller”, there has what seems like a general clause that lender may (but does not say they will) pursue deficiency judgment if law does not prohibit.
Many agents I know attempt to counter that clause with B of A by asking them to 1099-c and write it off on their books in lieu of pursuing deficiency judgment ever, and also asking them to report to the bureaus as “paid in full”. Most agents want to fight for their clients but they have to be smart about it.
Apparently people have not much success in getting B of A to remove this statement. Impossible, no? My colleagues who have worked in banks before say it is a matter of reaching the banks number. If the bank gets their number then they will remove that wording. Think of it in terms of “A” paper and “B” paper loans. You’ll get you’re loan done with a B paper deal but the terms might not be the best. With an A paper loan, the numbers might look better to the bank and thus terms might look better to the borrower as well. Same with a short sale. Same with a loan mod.
Happy short selling.