short sale deficiency: Not All Destin Short Sale Sellers Want Deficiency Waiver - 03/10/11 02:57 PM
Today’s trend in short sales is "waiver of deficiency”. A short sale is where a property is sold without enough proceeds to pay off the mortgage debt. A "waiver of deficiency” is what happens if the lender accepts the short sale proceeds as payment in full, and cancels the balance of the debt.
It used to be difficult to get waivers of deficiency from companies such as Bank of America and Chase. Now it is getting a bit easier, albeit not less painful for the homeowner. Typically, a cash contribution or promissory note is required for the lender to … (9 comments)
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short sale deficiency: Countrywide/Bank of America Approvals- Deficiency Threat Sends Shock Waves - 05/15/09 08:14 AM
Have you seen the new Bank of America/Countrywide short sale approval letter? It is sending shockwaves to unsuspecting short sale sellers. Here is a portion of the new approval letter:
The key statement of concern is Bank of America "may pursue a deficiency judgment for the difference in the payment received and the total balance due..." There are two contradictory elements in the demand letter:
1. The letter states that Bank of America has "agreed to accept a short payoff". Now, how can they "accept" a short payoff, then state they "might" collect the rest? They either are or are not.
2. It states "there may be tax consequences for … (18 comments)
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