Alright so I am ready to state how my client was able to get this verbiage removed from the BofA short sale approval letter. Remember I have talked to numerous attorneys about this subject and hundreds of real estate agents across the country and this was the first instance of a victory that I had heard of in the short sale fight against Bank of America. Basically I came across an attorney firm that had experience litigating with banks (years of experience). They were willing to take on the case after dealing with many other banks for the past couple of years on short sales but not Bank of America, since they had changed their approval letter, remember this was just done about 3 months ago. I worked the file to the point where I received the approval letter and turned it over the attorneys. They spent countless hours working their way up the chain of command within Bank of America, into their legal department and went back and fourth with negotiations for over 4 weeks. The attorneys burned countless hours, researching case law to recite in their conversations with Bank of America and haggled back and forth. I have seen transcripts on some of these conversations and they are pages and pages long and cite case law all over the place. Bank of America put up a huge fight on this issue. It is very clear that they plan on doing something with all of these short sale approvals and the sellers very well may be on the hook after one is completed. It is important to note that the seller and client I was dealing with was a primary residence owner, which purchase money loans. So the case law was in favor of the seller as they did have the option to let it go to foreclosure. Since then we have done another file using the attorney, with a refinance loan (recourse loan) and the attorneys were again successful in getting the famous deficiency clause removed again. They had to cite all different case law, and talked to different people within Bank of America, and it took even further hours of research to do it, but it was completed.
My conclusion out of all of this, is this. I did not have the capability to get this removed for my client myself. This issue went well beyond and outside my skill level of deal with the Bank of America executives and attorneys. I only have the ability myself to get in touch with VP’s and manager’s within the Bank of America loss mitigation department and the attorneys were dealing with the Bank of America attorneys and senior executive officers. This decision went very high up to get approved. Nobody I know could have ever gotten this done, nor had I ever heard of it being done, and I travel the country teaching and going to short sale seminars all the time. I have even spoken with some of my contacts over there at the VP level and they state they have never heard of this ever being done before. This particular attorney firm is familiar with CA real estate law and has extensive experience litigating with manyof the national lenders. This is not a run of the mill attorney firm. While I feel some other attorneys may try to do the same thing, they may not be able to produce the same results, as these attorneys definately have a reputation with these national lenders and know what they are doing, and I feel very fortunate to have found them.
Banks are getting tougher and tougher to deal with in regards to short sales and they are making significant changes to come after home sellers, and it is aggressively beginning, with Bank of America. Soon I feel, that many short sales will need to be handled by attorneys due to the fact that banks are trying to take this hard line stance. 3 months ago I was able to get acceptable approval letters from Bank of America specifically stating they would not pursue the seller for a deficiency, but since they have revised the letter I cannot. That is why I have teamed up with these attorneys to do the legal part of it for me when we do not get an approval letter that is acceptable and does not waive the deficiencies for the seller. If you are a client of mine you will have the option of having this attorney firm represent you if you are a Bank of America home seller. We will discuss all of your options and goals before listing your home and put you in touch with them when the time comes to get your approval letter. I will handle all of the real estate aspects, while the attorneys will handle the legal aspect of the deal. Give me a call today if you have a Bank of America Loan, have a home in San Diego and want to do a short sale.