Are BofA short sales closing?

Asked by Pat Holkesvig, Stockton, CA Thu May 29, 2008

BofA recently approved a short sale for my clients. The first mortgage is a purchase money loan. An offer from a well qualified buyer netting the bank $221,123 was submitted in January, 2008. BofA’s BPO valued the home at $220,000 two months later. No surprise since the home is in Stockton, CA , the “foreclosure capital of the US”. The value has since dropped substantially.
On my recommendation the sellers have met with an attorney who advised them to not accept the terms of the BofA short sale agreement. That agreement gives the bank and/or its investor the right to collect on any deficiency, a right they BofA would not have if the first mortgage is foreclosed on. As a consequence my clients have decided not to move forward with the short sale.
Information passed down to us from Bob Carus, Sr. VP of Mortgage Servicing informed us that BofA is unwilling to modify the short sale approval verbiage. It is the required verbiage on ALL BofA short sales….no exceptions.

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Pat Holkesvig, Agent, Stockton, CA
Thu May 29, 2008
Clients are letting it go into foreclouse....don't have to worry about the bank coming after them for the deficiency on the first since it is purchase money.
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Keith Sorem, Agent, Glendale, CA
Thu May 29, 2008
Your clients have decided not to move forward? So they are going to do what? Just curious to read your post. Normally for a lender to agree to a short sale there is hardship and the sellers are supposed to be insolvent. So asking a seller to sign a promissory note, usually unsecured and interest free, is one option. It does offer a way for sellers to rebuild their credit.

I am curious to see what posts you receive from anyone having info about B of A short sales too.
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