My seller gets a $15,000 bill from B of A after short sale!!!!

We did a short sale for my seller about two months ago and yesterday 

they get a bill from B of A for $15,000 that the bank says they owe.

Note, the short sale approval letter states (as we all know already)

that B of A will waive their right to persue a deficiency following the

completion of the short sale and that the debt will be settled. 


So what the $(*&#^ is that about?  I sent my seller a copy of the short sale

approval letter and pointed that section out and told them to send B of A

a copy of their own freaking SSA letter.


Anyone experience the same?  Is B of A playing a game and just trying to

suck blood from a turnip?




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Cathy, I am with you on this point. My buyers and sellers call me all the time for any variety of questions from the name of a handy man, to how to complete their homestead applications. Sometime it is to get my mailing address to invite me to a family event. And I gladly take that call and provide them with the assistance that they seek. I see our profession very much like a doctor, attorney, we are and should be their realtor for life. Just as people have family doctors and attorneys, I want to be see as the family realtor. I am always clear to ensure I dont' give legal advise, but I will always provide my buyers/sellers with the contact information on who can best help them resolve their questions.

In almost every state, the legal opinions accepted by the Attorney General states that most activities of a short sale are not considered law practice, EXEPT DEALING WITH DEFICIENCY< PROM NOTES< OR SHORT SALE APPPROVAL EXPLANATION. In other words, if you take it upon yourself to explain the legal ramifications of the approval language you are practicing law without a license and can be reprimanded or lose your license or be sued or all three.

As suggested, walking away from the issue is the safest legal approach, no doubt, however, your reputation is a tad more important than avoiding possibly saying the wrong thing when trying to help the seller.  Be careful in making sure that you keep stating that you cannot give legal advice when you give your suggestions.  Also, as a good person, not just a realtor, I would do as much as reasonable to help out.  If I were a lawyer, of course, without him giving me cash every minute, I'd walk.  (HA, yeah, that is pretty much my take on lawyers... ;-)

BOA has repeatedly proven that it is a big oaf - you've heard of the couple who sued them for foreclosing on their house when BOA didn't even have a mortgage on it.  (BOA ignored their facts.) The couple won (just payment for bills to sue, etc.) and BOA simply ignored the court order.  That is BOA in a nutshell.  (This is the couple that hired movers, walked into a BOA branch with the sheriff and started taking equipment until the manager decided it would be good to pay them - I'm guessing they tried to pay in credit card bonus points, too..) Many people cave rather than spend money and anguish to get what is owed them and BOA profits from that.  This problem sure seems to fall directly in that category.  You've already looked for a quick "oops" from BOA - didn't get that, so stay cool, BOA is working for the investor, ask the investor what game they are playing.  Beyond that, I'd have the seller contacting politicians (do they work for the banks these days or still claim to be obeying their oath of office? - oops, not exclusive positions..), etc.  - Could be a slow fix.. Good luck.

LOL.  I can top it.  I just today received a new mortgage statement and a forced insurance policy from IndyMac....wait for it.....on a property I sold in 2008! When I called them, and explained that not only did I sell the property in 2008, but that IM released their claim from title in 2008 and no longer have a lien on title, the rep told me "well our system shows it's still open, so you owe the money."

Yes, some times their systems don't work or just the people who are working for them don't know how or what to do. It happened to one of my client too and she filled bankruptcy and still the bank had open her filed and continued calling her and sending mail telling her that her house will goes to foreclosure if she doesn't want to keep it or sell it.

Referring your client to an attorney isn't leaving them hanging high and dry. It's simply assisting them in finding someone whose actually able to help them in that situation.....someone who's actually qualified to assist them.

Vanessa is absolutely right.  An agent can help with everything else, dispensing legal advice is just plain stupid.

I think you misunderstood the comments. Nobody was professing to dispense legal advice.

I believe we're all on the same page regarding that.

Amen Vanessa and Joseph.  Friend, family, long-time client...doesnt matter.  It is illegal to offer advice on legal matters unless you are an attorney.   It is cause for ethics charges, loss of you license and major fines and penalties.  Never do it!  Im all for being there for my clients and customers and I am for advice on everything from hairdressers to grocery stores to restaurants to providing copies of their paperwork, whatever they need but I would never advise them on how to porceed in legal matters.

How it happened? That is awesome.

Quick question for the sake of clarification - how many liens were on the property? It is entirely possible deficiency was waived on one but not the other.

This is what I was wondering.

For instance, if the 2nd was serviced by MetLife (LOL...this property would never have closed, but let's just pretend) for BofA...and the 2nd's approval letter did not release deficiency, then BofA would have the right to collect and would send the notice.



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