I just had a Bank of America short sale closing for a home near Destin, FL. BOFA issued TWO different approval letters for the same junior lien:
Approval Letter #1 (Emailed):
Bank of America agrees to accept $1000.00 in certified funds as payment in full of the loan. Upon the Bank's receipt of the payment of $1000.00, the Bank will report the account to the credit bureaus as "Settled", with the explanation "Account legally paid in full for less then the full balance.": 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.
Approval Letter #2 (Mailed - Dated Same Date as Approval Letter #1)
Bank of America agrees to accept $1000.00 as payment towards said loan. Upon receipt of $1000, Bank will release the lien and charge off the remaining debt as a collectable balance. Our recovery department will be in contact with you to make arrangements on this balance. Will report the account to the credit bureaus as "charged off", and show the balance remaining owed to Bank of America.
The bank insisted the sellers sign both letters. If BOFA tries to collect on this balance, certainly the sellers can show evidence by the first approval letter that BOFA stated the loan was forgiven. To say the least, Bank of America's behavior is mystifying.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Short Sale Pre Foreclosure Help.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
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Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy Rulnick, Broker and Realtor, has been selling real estate for almost 20 years. She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she also negotiates successfully to her buyers' and sellers' advantage. She is supported by a team of top buyer specialists. Wendy lists and sells homes, condos and townhomes.
All Rights Reserved. *"BOFA Issues 2 Contradictory Approval Letters!"* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2008 by Wendy Rulnick.This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.
You have to love it. And they wonder why we are in this mess
I have the letters on my desk, side by side. This is the new reality. Dated the same date. Just a few sentences changed.
Amazing but as you know the left hand doesn't always know what the right hand is up to.
Each "unbelievable story" makes the previously "most unbelievable story" quite credible, really. It'a unbelievable,.... that is, quite believable really!
Gene - The almighty bank has a problem!
Richard - I am serious, almost every day I have another crazy short sale story!