[bongocheetah]

I had further discussions with couple more BofA loss mitigation department reps. They most seem to all concur that:

1. BofA does not forgive debt
2. There is no "settlement" before closing. The promissory note has me responsible for all unpaid balance
3. As shortinPA said, they typically never file deficiency judgement.
4. After the closing their recovery dept will get in touch with me and do this:
- try if I can pay all the deficient balance in installments
- if I can't pay, they will "charge off" the debt and it will show on my credit history for however long charge offs show on credit history.



They never get you in touch with their recovery dept before closing, however I fortunately got connected to the recovery dept. The lady was very nice. She told me that they will go in this order based on my circumstances, other assets and whether it was primary or investment home:

a- try if I can pay all the deficient balance in installments
b- try if I can pay a part of the deficiency (typically 40% but it can be less )
c- if I can't pay, they will "charge off" the debt and it will show on my credit history for however long charge offs show on credit history. I do get 1099 for the deficieny.
d- in some situations they sell the debt to some external collection after charge-off. The collection will then talk to me.

From these discussions and in my post above, I am getting the feeling that the worst that I can expect is to have to pay some percentage of the balance OR get a charge off on my credit report.

Any thoughts?? Does it look like an acceptable deal based on the fact that BofA is not willing to budge at all before closing. At least it is better than having to pay 100% of the deficiency.

Thanks


After that I fortunately got hold of the