I got 2 related questions from agents about the same thing:
Question #1: "Ok now that the sellers shortsale is accepted... The seller won't sign and sell because of the judgment they the bank (bank of america) will slap on. How should I council the seller. ?? Best Regards, Sandy Mueller"
Question #2: "Have you had any luck getting short sales done with no default with Bank Of America/ Countrywide. Young couple, got a job transfer and needs to move, but very upside down on the house.. or do they need to stop paying also to get it done?? David Christ"
My Answer: We've gotten the deficiency language removed on one of our BOA short sales. It's just a matter of requesting it and the investor being willing to remove it. Get an approval letter that states they are waiving all future collection rights. Also, remind the sellers they also have a risk of being collected from in the future, after the bank forecloses. Do they need to stop paying to get it done? I don't know. Some people like chocolate, while others don't. Whether or not they will have to go late depends on the bank and even the mood of the negotiator. You should not tell them they should stop paying.Let them make that decision on their own.
Another Question from an agent: "I have a PMI company wanting a $30K note or a lot of cash. My seller can’t “sign the note and then declare bankruptcy” as it would be the end of his military career. He also has no cash to put into it. We tried $1,000. What do you suggest? Jerry W. Pemberton"
My Answer: Take it and not pay it. He might be able to stay in the military doing that. Or, negotiate the note down. The key to getting promissory notes waived is to prove the debtor has little assets and no extra income. That is done on their financial statement.
Third Question from an agent: "I have an approved short sale with BOA in Windermere, FL, set to close on or before April 16th.The buyer is willing to close this upcoming Tuesday. I received an email from the seller today that the property was foreclosed on March 23rd.
I contacted BOA negotiator and emailed the CEO and CFO. The negotiator confirmed that it is indeed foreclosed and there is nothing they can do. The investor is FANNIE MAE and I was told by the negotiator that it is the latter that want to foreclose, not them. She advised me that they cannot rescind it as Florida is not recantation state.
I am trying to get hold of someone with FANNIE MAE to help with the situation. Do you have any contacts there and can anything be done about this situation? Any assistance you can provide will be greatly appreciated. Sincerely, Ali Yche"
My Answer: If the approval letter has been issued, then I would think they would be legally obligated to uphold the approval letter. Unless, of course, they have a clause in the approval letter that says if the property is foreclosed, then the approval is null and void. Talk to BOA's legal department. They can probably cancel the lis pendens and motion for the judge to rescind the sale, etc. Don't take the seller's word for it. Call the clerk of court yourself, or go there and look at the physical file.
If you're running into problems with short sale files, then you probably need to look into the How to Escalate a File Course. Get more info at http://www.HowToEscalateAFile.com .
Got questions about short sales? Just ask.
Ben & Chris Curry - The Short Sale Agent's Advocate
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