Deficiency Release in Bank of America Approval Letters

Reno/Sparks Real Estate - Selling Real Estate in Reno/Sparks, Nevada

According to PartnerFirst, a nationwide real estate network, Bank of America is beginning to change the verbage in it's Short Sale approval letters to a less aggressive stance on rights to persue deficiency balances on approved Short Sales. Instead of a blanket reservation to go after individuals with approved Short Sales, now they reserve the right to go after any short sale that is found to have provided fraudulent or misleading information during the approval process. This is big news and a great step forward.
The issue of pursuit of a deficiency balance is one of the biggest obstacles to the short sale process and certainly one of the biggest areas of concern for any homeowner considering a short sale. If in fact the Bank of America approvals start to arrive with this new verbage, the short sale becomes a much more appealing option for many upside down homeowners.

The HAFA program, while flawed in many ways, contained a provision for complete release of the deficiency balance. While this is one of the reasons so many 2nd lienholders don't cooperate with a HAFA short sale - it is a viable option for a single lien Short Sale.

Complete PartnerFirst article available here:
http://tinyurl.com/29cml8r