Update from Bank of America on Short Sales
December 16, 2009 by Kristin LaVanway · 2 Comments
On December 15, 2009 , I attended a round table presented by the Women’s Council of Realtors. The featured speaker was a representative from Bank of America who shared an overview of the current short sale policies that BofA is following. The session was informative and very interactive and the audience shared a wide variety of frustrations and concerns with the current short sale experience. Through his role as a liaison between Realtors and the BofA short sale department, he hopes to improve the short sale process for BofA customers by providing valuable feedback from presentations like the one yesterday directly to the policy-makers in the BofA short sale department.
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I am a Realtor in Gilbert, AZ, working with clients throughout the Phoenix Metro area. I am lucky to love what I do and appreciate the difference I can make in people's lives.
In a previous life, I was a rocket scientist - really! - but decided to step away from corporate America to be a Mom to my four boys. Found it hard to do bake sales, so I ran a small independent programming business instead.
Flash forward...I am now a single mom and I face many, many challenges everyday. I am living through the hardships that many are facing in this economy. These experiences have motivated me to help other people in my shoes.
I have teamed up with Dean Ouellette to form the East Valley Team - the best darn team in the Valley. Check out our site at http://www.EastValleyTeam.com. I spend way too much time on YouTube - check ou tmy channel at http://www.youtube.com/klavanway
I noticed on the video that the Realtor was saying that AZ is a non-deficiency state…this applies to foreclosures, but does not apply to short sales…the approval letter that is received from the bank should include language that not only has your seller been released from the “property” but also from the NOTE from the bank, otherwise, your seller’s CAN still owe money to the bank down the road. I think we should get the word out to all Realtors that their sellers should have an attorney review their approval letter, as Realtors are not in a position to know whether or not for sure the bank has released the seller from all obligation to the loan. Here is more information regarding this subject.
Begin forwarded message:
From: “Deborah Y. Wilson”
Date: January 29, 2010 9:49:00 AM MST
To: “Carol Perry” , “Don Pollard”
Cc: “Scharlotte Schmitt”
Subject: Anti Deficiency Protection Under Arizona Law and the Short Sale – There is none
This was the topic of our roundtable discussion yesterday with Tom Farley. In case any of you are not aware, Tom Farley is the CEO of Arizona Association of Realtors and your lobbyist for the last 13 years. He spoke to the group about Anti Deficiency and the Short Sale, as well as providing updates on issues affecting Realtors that are up coming in the House and Senate as well as your local government. He requested that you go to http://www.aaronline.com to provide your voice and your support to those issues which include a proposed increase to property tax that is being discussed. He is working very hard to support the issues that maintain the best environment for Real Estate as an industry and homeownership in Arizona. He needs your support added to his work to create the greatest impact.
That is only one reason for my correspondence to you today. One issue that Tom made perfectly clear, and we all felt was important to get out to those of you who may not have attended, is this. In Arizona, there is anti-deficiency protection for a large number of property owners who go thru foreclosure, however, there is no statute that provides anti-deficiency protection to any property owner in the case of a short sale. Our anti-deficiency laws only cover foreclosure. Tom Farley stressed that it is important that we not make incorrect representations to the sellers in this regard. The deficiency protection they may be able to receive is only found in the terms of the short sale approval letter provided by the lender. If the lender does not fully release them from the lien, but only releases the property to close and transfer, there is not any guarantee that the lender will not pursue the seller for the remainder of the unpaid balance on the note. One popular myth that was dispelled at yesterdays meeting is that there was protection if it was purchase money. This is not true. While some lenders are providing the release in these cases they are not obligated to do so. Tom stressed the importance of legal counsel for sellers facing short sale with regards to this issue once again. Please talk to your broker and make sure you are protecting your self and your customers in this very unique market.
Deborah Wilson
Executive Account Manager
Deborah.y.wilson@magnustitle.com
480-560-9306
fax 480-682-3313
My commitment to you is to insure you have the educational and marketing tools you need to be successful in the market, no matter how the market may change or shift. Call me for assistance.