Bank of America - Short sale with collectible Debt

[rickeb1]

The problem is that BofA doesn't usually sign those letters. The end reads the same as the "Collectible Balance" version:
" Sincerely,
Short Sale Team - Loss Mitigation"

The "collectible loan" letter I was sent had the loan analyst's name at the bottom, so I was hoping the settlement letter had the same. But as you said, the important point is who actually authorized it.

By the way, at Seagirl's suggestion (thank you!) I sent off an email to Patricia Pikul about our situation. Trying every angle!

[Seagirl]

Rickeb1 and others: Don't expect a response from Patricia Pikul -- my experience is that she has not once responded to an email or voice mail that I have left her. Neither has her assistant. I have no idea what their job description is but attending to their customers or their customer's agents appears not to be a priority.

After submitting Shkir's letter, I received the following response (in part). So it would be ultimately helpful to learn who authorized the letter that Shkir had success with. Because right now our very good deal is dead. We've only got until July 31 to find somebody at B of A who will authorize the letter.

It is an unfortunate and complex situation, but it does appear that most homeowners will be better off allowing their lender to foreclose. As Realtors, my prediction is that in short order we'll be seeing legal counsel directing almost all of their short sale consultations to the route of foreclosure. Now that I've gained more experience and a broader understanding of how these short sales are going (and mostly not going -- less than 25% of short sales nationwide actually close which means that more than 75% DO NOT CLOSE) I've made a professional decision not to accept any more short sale clients. The system as it currently exists is a failure and as such produces failures. This is one losing battle this Realtor isn't playing or righting anymore.

"The below request to alter our approval letter has been declined. We must follow fair lending guidelines and treat all borrowers the same. As such, please advise if you wish to cancel your short sale request."

[californiakate]

Originally Posted by shkir

Sorry for taking so long to respond. I'm posting the letter now. I've editted out my personal information, but everything else is there.

ok...maybe I'm retarded. I can't figure out how to do the attachment, and I WORK with pc's for a living! I hit the attachment icon, and it's just a screen that shows a legend. Hmmm....I'm going to just hand type the letter below.
I'm not sure if I can post my email address, if anyone knows, let me know. I'd have no problem emailing the letter to people to see. I know it's NEXT TO IMPOSSIBLE to find this online dealing with BofA.


This letter confirms Bank of America's agreement to settle the above-referenced loan on the following terms:
Bank of America agrees to accept $147,200.08, including a cash contribution of $5,000.00 from Shakir, in certified funds as payment in full of the Loan. Upon the Bank's receipt of the payment of $147,200.08, the Bank will report the account to the credit bureaus as "Settled," with the explanation "Account legally paid in full for less than the full balance," and remove the 30, 60, and 90 day late from Shakir credit report. Bank of America will waive balance due on the above referenced loan and release Shakir from all further obligation therein, and waive all right to pursue further judgement or deficiency, once the Bank is in Receipt of the payment of $147,200.08. Please note that any subsequent refund received by the Bank will be applied to the outstanding balance of the loan.
In addition, the Bank will be reporting the amount of the debt forgiven to the Internal Revenue Service as required by the Revenue Reconciliation Act of 1993. You may want to discuss the tax ramification of this reporting with your accountant.
Please confirm your acceptance of the terms stated in this letter by signing and dating the enclosed copy of this letter on the line below and returning the signed copy with your payment to the address stated above. If the Bank does not receive this signed agreement and the payment specified in this letter by 12/30/2008, this offer becomes null and void.


And there you have it. The full letter that I signed, sent back to them, and now am buying again! The thing I realized the other day was this, they Bank didn't DELETE the late payments, they blocked them. Which, actually is kinda hurting me as I look. Because when my credit is pulled now, they see my file for Bank of America mortgage as good good good, then blocked for a few months, then paid and closed. So, I'm starting a dispute now to get that unblocked, and updated to just say 'Paid on Time' for those months.
Also, one thing I learned with my loan also, which caused the most pain. I was in some special loan program with BofA, which gave me a special rate, and low down payment when I bought my house, and a loan they kept fully inhouse. SO, when I was doing my short sale, it actually HURT me. I was told be the manager in the Loss Mit. department, that had I NOT been in that program, my short sale would have been approved and completed months before we finally came to an agreement.
My total difference between the loan balance, and payoff was about: $126,000.00. Houses in the area of Phoenix I lived in FELL like a ROCK! They have since fallen about another $30,000.00 since then.

- Shakir

Hi Shakir--Is there a way you can post a copy of that letter with all of your information blacked out so that I can show B of A that they DO settle? I am in the process of negotiating with them right now and my agent said if she had a letter like yours, she could absolutely get them to agree to settle. I have scoured the internet and your the only one that has a resource like this. Please let me know. Thank you so much. She needs it on letterhead.

Kate

[Seagirl]

Kate, see my post #52 above. I had my client try Shkir's letter and it was rejected according to Alicia Crenshaw (MLO Team Member - Liquidation): "The below request to alter our approval letter has been declined. We must follow fair lending guidelines and treat all borrowers the same. As such, please advise if you wish to cancel your short sale request."
What is needed is the identity of the person who approved Shkir's letter. Right now, BofA is saying that they do not alter their approval letters.

[rickeb1]

Right now, BofA is saying that they do not alter their approval letters.

They don't have to alter their approval letter, they just have to send out the right one. They DO have access to a settlement letter; I had one of their reps actually read it to me, and it was word-for-word the same as Shkir's letter, except for the part that he managed to have added about deleting the late payments from his credit report.

Their stance, though, is that they do not offer the settlement letter if the amount they are going to receive from the short sale is less than 80% of the amount owed on the mortgage. I imagine that almost no short sales actually go for so much, so almost no one gets sent the settlement letter.

I have been trying to get through to them that in a non-discrepancy recovery state such as Arizona, the settlement letter is the only applicable response, since a person would be much better off just walking away from the property rather than agreeing to allow BofA to come after them for the rest of their lives for the balance if they agree to the "collectible loan" offer. The people in Loss Mitigation typically just say that they don't know anything about various state laws, they leave that to the Recovery department, and they don't really care if it goes to foreclosure or not. I think it is likely because each "loan analyst" has around 500 cases to work, and their goal is just to clear their plate.

I continue to be both amazed and angered by how non-responsive BofA is, even when trying to close a transaction that is clearly in their best interests to close. You would think that they would see that settling for a short sale is far better for them than adding another foreclosed property to their inventory, making them responsible for maintaining the property, cutting the lawn, paying the HOA fees, paying the taxes, eventually paying a realtor to sell it for far less than they could get if they just agreed to a short-sale settlement right now. I can't imagine how much money they are losing every day because of their ignorant approach.

[Seagirl]

Rickeb1: THANKS for the clarification about the approval letters. I forwarded the link to my client again to read your post. B of A has not been communicative about their approval letters with my client or with me. We have been given varying information depending upon which rep we are assigned. Also, Washington is in a similar to Arizona so you're right why would anybody sign the collection letter -- it's not in the homeowners best interest. We continue to try and reach Patricia Pikul since she is the Vice President of that department. Neither me nor my client have ever received a return call or email from her or her assistant. I'm in the process of working to figure out who is above Patricia Pikul. For what it's worth.

[murf3030]

Has anyone heard from SHKIR? Can anyone else provide any examples of where they were initially sent the "collection" letter from BOA wanting them to be responsible of any defiency and then negotiated a "settlement" letter like SHKIR provided? I am currently in the same situation. I live in Missouri and have a 1st with Countrywide, now BOA, and am waiting for their acceptance. I have a 2nd(HELOC) with BOA and they have approved my short sale, but only with the agreement that they are able to come after me for the deficiency (approx 53,000). If I could afford to pay the deficiency, I wouldnt be in the situation I am now. Just needing to know the best mode of attack to fight/negotiate this. It seems that even though Countrywide and BOA are the same, they still funtion seperately with different contact numbers for each department. I am just really frustrated at this point and could use some serious help.

[Seagirl]

murf3030, my client tried to use SHKIR's letter and it was rejected twice by two different people. They said sign the Approval Letter (collection) letter or we're closing your short-sale file and sending you to foreclosures. My client is now canceling her listing and going to take the foreclosure. B of A won't be able to collect anything from her. She tried to work with B of A, we got an excellent offer on the property, but B of A dinked around with the buyers for three months during which time they changed their terms and advice to my client multiple times. It became clear to us that B of A has no desire to work with their customers on short sales, not just mine but most of their other customers as well. Read my other posts and you'll see what happened with our process and how B of A has chosen this short sale course of action that ultimately ends in most of their customers going to foreclosure. Just so you know, if you're in a state with laws like Washington and Arizona it may be in your benefit to let them take the property but consult with your attorney don't just take my word for it.

[murf3030]

I am not in a positon to just let them take it. I would ultimately be responsible for an even higher deficiency it that was to happen. I have been compiling names, addresses, numbers and addresses email addresses of people within BOA, local and federal government. I refuse to let this go by without a fight, but am hoping there is someone else out there like SHKIR that can help.

[Seagirl]

murf3030, best of luck. I learned that less than 23% of short sales nationwide make it to closing. And keep posting here. Maybe something you learn or succeed at can help somebody.

[murf3030]

Thats statistic is not surprising. I am just gonna go up the chain as needed.

[rickeb1]

Here is the latest with our short sale attempt with Bank of America, in case it is useful to anyone. The day after I sent an email to Patricia Pikul (V.P. Loss Mitigation – thanks Seagirl!), I got a phone call from Rick Shults. I explained again about Arizona being a non-recovery state, and that we would be giving up our rights and protections under Arizona law if we were to agree to the “collectible debt” letter. He insisted that we would not be giving up any rights or protections, and that if the Recovery department ends up not being able to recover anything, than that’s the way it will go.

This sounded good, but I was still very leery. So, I went back to my attorney, who practices in Arizona and is familiar with these laws. I sent her copies of the “collectible debt” letters, called her up, and discussed it in detail with her. After studying the letters, she was very strong in her recommendation that we should NOT agree to make our loan a “collectible debt”. She said that despite the assurances of Mr. Shults, we would indeed be giving up our rights and protections under Arizona law if we agreed to this letter.

So, back we go to Loss Mitigation to see if we can get anyone there to understand that this “collectible debt” letter is NOT appropriate for a property in a non-recovery state. Frankly, there is a part of me that feels that BofA is being very, very deceptive in trying to get people in non-recovery states such as Arizona to agree to these “collectible debt” letters. On the other hand, maybe the Loss Mitigation folks just don’t know about this, especially since the Recovery department, which does seem to know, is a completely separate department, and there does not seem to be much communication between the two.

I’ll keep posting as we progress, in hopes that it helps someone else. By the way, the primary applicable Arizona statute can be found here: Format Document.

[shkir]

Sorry Everyone!
I thought I was sent automatic emails when more replies were posted, so have not checked this forum in quite abit.
So you asked who was my Loss Mit. rep that I worked with. His name was: Jim Pellegrino. I looked over my letter again, and his name is actually on the letter at the bottom.
I am VERY familiar with Patti Pikul, and Alisha Crenshaw. I might even still have Patti's personal cell phone number around here too! Yes, she gave me her cell phone number, I'm sure on the urging of Randall Chestnut, who is the VP over the entire Loss Mit. department. In other words, Patti reports to Randall.
My advice to everyone, work the Patti phone and email! She was the one I had to work and work, and finally after a 45 minute phone converstaion, get her to call the recovery department, and have them tell her the unrealistic payback options they wanted. Ask for the Recovery Department phone numbers! Call them, and give them the numbers, and ask what your pay options would be. When they tell you 800-1000 a month, then call Patti back, and share those numbers with her!! I also offered to bring money to the table with Patti, which was the deal closer.! Granted, I have to borrow borrow borrow for that money, but it's all worth it now!!
Here is the information to Randall Chestnut:
Randall Chestnut
randall.chestnut@bankofamerica.com
Phone: 716-635-2095 (goes to HIS voicemail, not a assistant, USE IT! USE IT! USE IT!)

DO NOT BE DISCOURAGED! My process took four months of fighting with them before coming to the desired outcome!

My only other advice I can suggest, is on the Credit Report listings. Let them leave the 30 and 60 day lates on there, request anything over a 90 day be deleted, as WELL as listing the account PAID IN FULL on Credit reports. Take the temp. hits with the 30/60, cause a Paid In Full will have a much better standing when you go to buy again.

I will keep checking this forum more often, to provide any personal experience information that I can.
One last advice for those using a realtor: TAKE CONTROL OF THIS YOURSELF! Do not rely on your realtor to try to get you in the best position. I never did, and glad I didn't, because he often suggested I just sign off, get it done, and worry about the recovery later. FALSE!
You have to have a agreement done before you sign off on anything.

Best of Luck to everyone!!

I'm not sure if I can, but if there is a way the FORUM MODERATOR would allow people to have my email address, I have no problems sharing my actual letter, with my personal information blacked out. There is nothing in my agreement that says I could not share it!

Moderators: can you post my email address so people can contact me for a copy of my letter??? It's VERY difficult to find information relating to BofA, that's why I wanted to share my story.

[Seagirl]

If you Google "San Francisco Business Times Sellers Own Balances After Shortsales" you will find an article by Mark Calvey discussing Bank of America's practices that discourage short sales. Here is my link: Flickr Photo Download: SFBusinessTimesArticle

[murf3030]

First of all, I want to thank Shkir for replying back to everyone....

Latest update on my issue. 2nd HELOC with BOA

They initially accepted my realtor's 6900.00 offer (62K Balance) but they wanted me to sign off that their Recovery Dept could come after me for the deficiency. That is just is not possible! If I could afford to pay the deficiency, I wouldnt be in the situation I am currently in.

Anyways, I wrote a letter back to the Short Sale dept stating and restating my hardship. Threatened to write my state govt, the BBB, etc and also include the chain of managment that has been given earlier in this chain. After I didnt hear anything for a couple of days, I re-faxed the letter again to the rep assigned to my file.

My realtor emailed me tonight and what do you know, I MADE SOME HEADWAY...

They pulled back the initial approval for the 6900. They now say they will take 10k as payment in full for the loan. WHEW!! I still need to fight to get them to agree to mark the loan on my credit reports as Paid In Full/As agreed and to remove any lay payments.

With that said, I am feeling a bit better. I will modify my letter to them tomorrow to try and have them include the above. I will let you all know how it goes.

Thanks,
Tim

[RJ2shields]

I have been reading all your posts and have found them very helpful. We have a 1st and 2nd with BOA ( originaly Countrywide) . We originally listed our house for 749K and have dropped it to 699k > Our short term realator is listing at 675 ( what we owe on both mortgages) and will drop price 25k a week. At some point we ( hopefully) will get a buyer. I have seen 85 % and 80 % mentioned as what BOA will accept and not seek judgement personally against us. Has that been true ? Thanks

[nal67]

I sounds to me as if BofA and Countrywide are still slightly different departments. I have just had an approval for a short sale with BofA and am pursuing a modification with CW and they are definitely different folks, numbers, proceedures, etc.

For my BofA short sale approval, it was purchase money on a vacant lot. Details are as follows:

- Purchase money in CA and I believe it stayed in house and wasn't sold.
- We are paying off just under 70% of the loan with the sale.
- We got the approval in less than a month from the time an analyst was assigned.
- They have agreed to "settled paid in full for less than the full balance".
- Pretty sure there will be no deficiency judgment based on the above.
- They will issue a 1099c.
- We are not having to come up with any cash ourselves.

We are really lucky based on what I am reading elsewhere but we did have some leverage because there were some legal situations that needed our cooperation in order to solve so we used this to negoatiate and get the approval fast.

[faith]

Originally Posted by RJ2shields

I have been reading all your posts and have found them very helpful. We have a 1st and 2nd with BOA ( originaly Countrywide) . We originally listed our house for 749K and have dropped it to 699k > Our short term realator is listing at 675 ( what we owe on both mortgages) and will drop price 25k a week. At some point we ( hopefully) will get a buyer. I have seen 85 % and 80 % mentioned as what BOA will accept and not seek judgement personally against us. Has that been true ? Thanks

Welcome to this forum,
Here's the link re Short Sale Outposts and Success stories. I hope it will help you in your decision making and how to deal with your lender.

http://www.loansafe.org/forum/short-sale-outpost/


http://www.loansafe.org/forum/success-stories-homeowners-who-fought-back-won/7049-wells-fargo-modification-success.html

In California if you have a Purchase Money Mortgage and never refinance there is an Anti Deficiency Judgment called Californial Section 580b meaning your lender can not pursue any deficiency judgment once the house forecloses or sold. If your home qualified as a principal residence and has purchase money mortgage then if you do Short Sale, the balance owed called deficiency judgment is covered under CA Section 580b which states,


No deficiency judgment shall lie in any event after a sale of real property or an estate for years therein for failure of the purchaser to complete his or her contract of sale, or under a deed of trust or mortgage given to the vendor to secure payment of the balance of the purchase price of that real property or estate for years therein, or under a deed of trust or mortgage on a dwelling for not more than four families given to a lender to secure repayment of a loan which was in fact used to pay all or part of the purchase price of that dwelling occupied, entirely or in part, by the purchaser.

Where both a chattel mortgage and a deed of trust or mortgage have been given to secure payment of the balance of the combined purchase price of both real and personal property, no deficiency judgment shall lie at any time under any one thereof if no deficiency judgment would lie under the deed of trust or mortgage on the real property or estate for years therein.


Your home must be your principal residence in which you and family lives. It includes the conventional single family home, condominium or cooperative, a mobile home or a duplex. If the taxpayer has more than one residence, it is the home in which the taxpayer lives most of the time.


Thanks and God bless.

[patrick101]

Hi,

We're in the process of short sale of our home in CA and our loans (1st & 2nd) are non-recourse. My question is can a short sale be closed/completed without my signature? Can we still back out of the short sale deal? If we cancel during this process can my realtor or the buyer sue us?

Thanks.

[faith]

Originally Posted by patrick101

Hi,

We're in the process of short sale of our home in CA and our loans (1st & 2nd) are non-recourse. My question is can a short sale be closed/completed without my signature? Can we still back out of the short sale deal? If we cancel during this process can my realtor or the buyer sue us?

Thanks.

Welcome to this forum,

Your question: My question is can a short sale be closed/completed without my signature?

-No.
Once the lender approved the short sale the negotiator will inform the seller's agent and the agent to inform the seller that the investor of the loan and the pmi company has approved the Short Sale. However the lender through the negotiator will give conditions of the Short Sale and will send you a letter with those conditions.

If the Short Sale goes through and escrow closes they will not pursue any deficiency judgement against you if it is a purchase money mortgage and never refianced. But it forecloes they will; It must be the buyer who made the offer and no substitution; they also will mention the sale sale and the seller will not get anything from the sale of the house;the transaction will be done by whoever is the title company, and whatever the terms of the Short Sale.
It should also specify in the letter that the buyer will be paying for the closing costs, they will the seller's agent a 5% commission, no closing costs to the seller.

Make sure that they put in writing that they will not pursue any deficiency judgment against you. They will give you 30-45 days to close the escrow, the title company will tell you where to go to sign the loan documents and will ask for your ID and have the loans documents notarized. Once all the papers was signed and notarized, the funds is being transferred to the lender, the documents signed and notarized is being sent to County Recorder. After 60 days the County Recorder's office will send you a Full Reconveyance letter stating the the property with address so and so has been paid in full or satisfied.

Your question: Can we still back out of the short sale deal? Why, did you have a second thought, are you planning to get loan modification.? You can but before you it make sure that, that's what you want. You have to learn to let go, you can not change one minute and change the next minute. If you have to be professional. Your agent works so hard in putting this together and to be frank with you, you are lucky that your Short Sale was approved. Again, that's the decision you and your husband has to make.

Your question: If we cancel during this process can my realtor or the buyer sue us? Yes and No, it depends on the contract. You need to read your contract, there's something written in the contract that if you back out, the buyer's deposit let's say is $5000, when you back out you have to give it back or what eer the contract says. There's an exclusive contract by your agent if you back out it's stgated in the contract how much percentage you are going to pay him. I have that in my contract and I did not know that my contract was exclusive, when I was trying to back out my agent told me that he will sue me for whaever amount specified in the contract. I prayed and thank God he asnwered, my buyer's backout and I just let the listing expired. I hired another agent and thank God I have a good agent and knows Short Sale. I have a successful Short Sale, thank God for Moe and this forum.

Whatever you do, think it over, let a day or two goes by, don't make a decision when you are angry, depressed or confuse. Let go and let God take over.

God bless you and take care.

[patrick101]

Thanks for your reply Faith.

The reason why we're contemplating of backing out is it's better to foreclose than to do a short sale based on what I've read here. In CA 580b we will not be liable for any deficiency via foreclosure but there is a chance of deficiency under short sale. That's my understanding, correct me if I'm wrong.

If we stick with the short sale maybe we can just demand BofA to remove any deficiency, right? That would be ideal, short sale but no deficiency judgement later. But what if they don't give in?


Thanks again.

[faith]

Originally Posted by patrick101

Thanks for your reply Faith.

The reason why we're contemplating of backing out is it's better to foreclose than to do a short sale based on what I've read here. In CA 580b we will not be liable for any deficiency via foreclosure but there is a chance of deficiency under short sale. That's my understanding, correct me if I'm wrong.

If we stick with the short sale maybe we can just demand BofA to remove any deficiency, right? That would be ideal, short sale but no deficiency judgement later. But what if they don't give in?


Thanks again.

Patrick,
When you negotiate the Short Sale you have to ask the negotiator to put in writing that BA will not pursue any deficiency judgment against you. If it's a purchase money mortgage BA can not sue you for the deficiency judgment against you. It's easier to negotiate if the 1st and 2nd is owned by both BA. Just used a scare tactic, tell them that if they will not put it in writing that they will not pursue any deficiency judgment against you, will not sign the escrow papers, you will let it foreclose and it will be hard for them to get a buyer, remind them that the sale price is going down, the buyers might back out, you will file for bankruptcy, etc.

I just want let you know that Short Sale is very frustrating and low process, you hav eto be bold, persistent and patience. You need to email, call and fax all the CEO's, president and higher ups of BA. Moe always says, the squeaky wheel gets the greese.

Here's the link for Short Sale Outposts.
http://www.loansafe.org/forum/short-sale-outpost/

Hope this helps.

God bless and take care,

[RJ2shields]

Just a quick update . We live in Pa our short sale realtor finally talked to someone at Boa . They 'sort of' think 'fair market value' is around 475 to 500k . Since we owe 675 we have to start at 675 and reduce it 25k a week. Which means it will be anoth 7 - 8 weeks BEFORE we even aproach FMV. Some system !!!!!!

[faith]

Originally Posted by RJ2shields

Just a quick update . We live in Pa our short sale realtor finally talked to someone at Boa . They 'sort of' think 'fair market value' is around 475 to 500k . Since we owe 675 we have to start at 675 and reduce it 25k a week. Which means it will be anoth 7 - 8 weeks BEFORE we even aproach FMV. Some system !!!!!!

Rj2shields,
Did you ask your agent if he has experienced doing Short Sale. One of the tactics in having a successful Short Sale is through right pricing of your home.

If you want to attract a buyer and you are desperate in selling your house as soon as possible, you have to price the house at a price that will attract a buyer. The lender will not approve the Short Sale if there is no offer. The buyer will not even see a house that is priced higher than the current selling prices of the home. Remember there's a lot of competition, and you have to make sure that an agent will bring his orher buyer because he or she knows that the price is right. Let me remind you also that the prices of homes keeps going down every week and a lot of buyers are waiting for the prices of homes for sale to go down a little bit more before they make an offer.

You can check the website of zillow.com, at www.zillow.com
put your address and state and zip code and you will get the listing of the house recently sold in your area and also the homes that are for sale.
For example if the last home sold was $400k and the selling price in your area is $400 or lower say $399k, you have to price it at $395 to attract a buyer.

The lender will approved a Short Sale offer within 85-90% of the Fair Market Value. When I put my house for sale in July of 2007, I listed it at my price of $499k because that's what I've paid for, my agent told me to put it at the fair market value to attract a buyer. But my husband said no. So we did what you are trying to do every week we lower the price down to $399k. But no agent and no buyer came. I even distributed flyers myself, and helped my agent sold the house, during the last two months there were 6 buyers that made an offer but all backout when they found out that my lender is Countrywide, and no one else checked my house until the listing expired.

I have listed it again to an agent who has experienced doing Short Sale and we priced it at the lowest price, we saw the recent home was sold at $299k, so I told my agent to list it at $290k. After two days of listing there were 4 offers, 2 offered $290k, one $260k and the other one the 2nd made a offer of $298k with a condition that the extra $8k will be applied to her closing costs.

My agent kept showing my house and accepting offers. The first in line backout due to long process of CW making decision to approve the Short Sale. CW finally accepted the 2nd offer but I did not just accept their approval. I made a demand that they will put everything in writing that CW, its investors and the PMI company will not pursue me for any deficiency judgment. The 2nd mortgage wanted me to sign a promissory note, I say no, let it foreclose and I will file for bankruptcy. I said that I have purchase money mortgage and never refinanced and therefore covered under CA Section 580b that in the event of foreclosure or the house sold, the lender can not pursue me for the balance owed.

The investor paid off the 2nd mortgage for $14k from the net proceeds of the sale of the house, the buyer's request that the extra $8k be applied to the closing cost was approved, CW paid 5% commission of the real estate agent and I was not charged of any costs. Thank God for Moe and this forum for all the helpful information they have given us.

Hope this helps.

[murf3030]

Shkir...

Since I am not sure if a moderator will allow you to post your address... I will give you my email address to send the copy of your letter to. BoA is saying that they cannot modify my settlement letter to reflect how they will report to the credit bureaus or them removing any late payments. You can contact me at: tmmurphy@ymail.com

I look forward to hearing from you so that I can resolve my issue.

Thanks in advance,
Tim