[bongocheetah]

Hi,
Home in VA, served as my primary residence for 2 out of last 4 years.
$333k owed on primary loan with BofA (Bank of America)
$110k owned on secondary which is a heloc with BofA

I have got a very good contract for short sale that has been presented to the bank. Contract price is $401k. Primary/First trust gets fully paid off. The second (heloc) gets $39k.

I was excited that this would be slam dunk but BofA has come up with the following on acceptance letter from the second:

"BofA accepts the short-sale with $39k. The bank will release the lien and charge off the remaining debt as collectible balance. Our recovery dept will be in contact with you to collect this balance. Will report the account to credit bureau as "charged off" with remaining balance showed as owed to BofA"

At the bottom of acceptance letter they have me signing for:

"I will remain responsible for the unpaid balance. I also ack that status to credit bureau will be a charge off".

I am very concerned about this verbiage. Can someone please answer the following questions:

1. Is this BofA's way of keeping the right to file deficiency judgement?

2. Do I have a chance that BofA will accept 5-10% cash and declare it a done deal with no charge off? How do I approach BofA?

3. My short sale expert says that he has not seen any bank come after the borrower with deficiency lien after closing. My fear is that the chance still exists?

4. Is there a possibility that BofA would rather do a 1099 instead of a deficiency. I am fine with 1099 since I can prove that I had the house as primary residence for 2 out of 4 years and hence have to pay no tax on the 1099.

Any advice will be appreciated.
Thanks