Learn how to get your Bank of America short sale approved with no
deficiency in this Bank of America Case Study
Bank of America "No Deficiency" Short Sale Case Study:
Property Location: Lynnwood, WA
Lender: Bank of America (BAC Home Loans)
Hardship: "Our condominium has been listed for a few months and, even with the price dropping well below the amount we owe, we have not received any offers. In addition, our financial situation is changing. My wife has been laid off recently. Without a prospect of a buyer, and losing half our income is causing us to seek help. If there is a good solution to this situation, we're open to it. We are open to a short sale should a buyer present themselves at a price you are willing to accept. However, with the lack of activity we are seeing at the current list price, we believe this may not occur. We are also open to renegotiating our mortgage to reduce the monthly payment to an amount that would allow us to rent the property. However our homeowner's association has a cap on the number of units that can be rented out, which, we're told, may be exceeded by the time you read this. We are distraught at the state of this situation and would like to find an acceptable answer as quickly as possible.
1st Loan Balance: $236,273
2nd Loan Balance: $48,075
Sales Price: $179,200
Approved Commissions: 6%
1st Loan Approved Net Proceeds: $155,581.97
2nd Loan Approved Net Proceeds: $3,366.03
Timeline and Notable Events: On June 7th the short sale was submitted and all requested docs were uploaded on to Equator. On June 14th we received an email from Equator telling us that they were ordering an updated interior BPO. On June 23rd, Equator asked us to have the homeowner call in to discuss their financials and their hardship. On July 11th a counter offer was received from Equator, cutting commissions to 5%, eliminating the seller concessions and raising the purchase price. We countered back at 6% commissions and the original terms.
After a couple of more go-arounds, we ended up with the approval letter on August 24th with full 6% commissions, full deficiency release for the seller, and a purchase price agreed to by the buyer. In order to secure the deficiency release, the seller has agreed to a $5,000 cash contribution at closing and a $5,000 note, the terms of which can be seen in the approval letter that is available for download below.
The end result is that the homeowner was able to avoid foreclosure, and get a full settlement of both of their loans at a cost of $10,000. This represents around 20% of their 2nd lien balance. If they did not do a short sale and they walked away from the condo, they would have had a foreclosure on their credit report and faced up to a $50,000 deficiency judgment from the 2nd lien holder, which could have then been attached to their current property.
To download a copy of the short sale approval letter, click here: http://seattleshortsales.com/LiteratureRetrieve.aspx?ID=67765
If you are a homeowner, and would like to learn more about short selling your home, please go to: http://seattleshortsales.com/homeowners/
If you are a real estate agent, and would like to learn about our no-fee short sale service, please go to: http://seattleshortsales.com/agents/
Ross Kilburn
Loss Mitigation Specialist
Dept. of Financial Institutions License #: MLO-333817
O. 800-603-3525
F. 888-860-1314
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