Bank of America Borrower Cash Contribution

Real Estate Agent with Young Realty Group, Inc. BK3055753

For the past two weeks, more supervisors are reporting the new requirement for a cash contribution to close the investment short sale.  Not much to request for investment property if it means getting out of your current situation and moving on with your life.  I also see more note requirements to close the short sale or a combination of both.  Why would a borrower balk at being asked to bring $10,000 to closing and sign a note for $25,000 if it means getting rid of property and replacing a 800k plus note to something more manageable.  So who is to say after the closing a month or so down the road the lender won't offer a settlement on the note. 

Working with Bank of America is like walking down a dark street, but I do see a light all the way down at the end.  Keep on them and you may get your short sale through sooner than you think.  I have to say all the level two reps I have dealt with are really great employees.  I won't list any names here but I have sent letters to their managers thanking them for helping us move these properties. 




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Sidney Jimenez
Keller Williams - Miramar, FL
CDPE, Short Sale Expert, 954-665-9449,


I agree with most if what you said, although I can't imagine having a good experience with BofA. It just seems my street is longer than yours because I can't see any lights, not even a haze.

If they kept their requests to the way you explained it I think it would be great. Lately, though, they have been asking for the money, plus an agreement to pay the rest of the amount owed AND they won't release the Deficiency under any circumstances. Hopefully, this is a trial on their part because if it become their modus operandi (MO), then we are in for long battles. By the way, I've run across the same requests with Wells Fargo.


Aug 22, 2009 10:27 AM #1
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Lori - Many people are NOT opposed to bringing some cash or doing a prom note if it ends their plight.  As Sidney says, the open-ended threat of deficiency is worrisome.

Aug 23, 2009 10:33 AM #2
lost in a short sale

Someone please help me in this short sale hell. I am a seller who has a relocation team. The team was to buy my home back but it had to be listed 30 days. We found out it was a short sale due to the market. I listed and a person immediately made and offer. They pulled out later because they were afraid they would miss the tax credit period and purchased another home. Then the relocation person offered to buy back my home and then submitted short sale documents to the lender. They lender denied it saying I should have stopped paying my mortgage before asking for the short sale as I was current. They also told me to re-submit after I was in default. It just made no sense to me. In the meantime another offer came in and now they write me and tell me the short sale is agreed upon if I give them either $4000 in ten days or sign a promissary note for $9000 for 90 months or seven years. What is up with this? It makes no sense at all. I have asked my realtor why and they got upset with me for evern asking. Someone please explain to me what is going on. Do you think I should I just walk away from this entire thing? With all of the foreclosures why would the lender do this when I am trying to be a good customer? And why and how does $4000 turn into $9000?


Nov 06, 2009 01:49 PM #3
short sale seller hell

I have to really disagree with this...   Why would a buyer balk at a buyer contribution of $10,000???

Are you kidding me?  How about because they have already exhausted their savings, drained their retirement accounts and have a mountain of debt from being unemployed for almost a year.  Short sales are a last resort and it's not unusual for the people who request them to not have that kind of money lying around.  Or, even $3000... If you have no savings, you HAVE NO SAVINGS!

This is just the latest bank scheme to screw people who can least afford it even further.

Apr 26, 2010 05:57 PM #4

FYI.... I read this from other website...


Lender Requests for Seller Contributions
Lenders are starting to go after money in a seller’s bank or retirement accounts before they approve a short sale request.  Increasingly, banks are asking Sellers (via their Realtors) to sign over a Note for the amount they have in the bank as a condition of sale.  However, in states where mortgage debt is non-recourse, lenders have no right to these funds, and Realtors who suggest otherwise can be liable for negligence.

May 05, 2010 09:46 AM #5
Mark Peek
Roseville Rocklin Real Estate - Keller Williams - Roseville, CA
Peek Real Estate Group - Roseville CA Real Estate

Had this happen to 2 of my BofA short sales recently.  I got them all waived.  If you fight it, they will back down.  The problem is, they know many agents and borrowers will accept their terms to close the deal, so they do it.

Sep 22, 2010 04:22 PM #6
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