Can it be? Bank of America has a new approval letter? Actually, it is only a change in verbiage. But, this change is monumental and noteworthy. In the past, BofA reserved their right to pursue the borrower/s for the deficiency when applicable. That language scared off many homeowners and real estate professionals. BofA's stance was that they needed to reserve the right to collect on the deficiency in the event of fraud, false information, or misrepresentation. Fair enough. But is that the best way to convey that message in a sue-happy society where everyone is watching their backs? Homeowners feared being sued and sometimes opted out of a short sale all together. The problem with that is that foreclosure traditionally leads to a worse outcome for the homeowner in most states. Real estate professionals have been booing and hissing this language for two years now. It is a frequent topic of negative discussion amongst active short sale agents. In some markets, it has even affected BofA's loan origination and retail reputation among agents in the know. Well, this week alone, our office received two approvals on two different properties with NEW language regarding pursuit of deficiency. Here is the language verbatim: "Upon receipt of the agreed amount, BAC Home Loan Servicing, LP, and/or its investors will waive the remaining balance due on the above referenced loan and release the borrower from further obligation therein, and waive all rights to pursue further judgment or deficiency... If it is subsequently determined that the approval of the short sale was based, in part, on information which BAC Home Loans Servicing, LP later determined to be false or misrepresented or fraudulent, BAC Home Loan Servicing, LP reserves the right to pursue the remaining balance of the note." There you have it folks. You heard it here first. BofA has listened to the masses. They have altered their unnecessarily scary approval language just in time for HAFA and the short sale wave that is on the horizon. Matt Vernon from BofA has actually done a great job shaking hands, talking to Realtors, answering the hard questions, incorporating the Equator technology platform, and implementing other industry advancements. I think if I try hard enough, I can here the booing and hissing going away and being replaced by a subtle golf clap. Hopefully a standing ovation is in the near future. Keep helping homeowners!
Coastal Real Estate - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL
I'm expecting a BoA approval letter today so hopefully it comes in with the language needed to help the sellers relax.
Sep 13, 2010 04:22 AM
Rochester, MN
JohnHart Real Estate - Santa Clarita, CA
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