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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Many Bank of America approval letters do NOT say that the deficiency will be waived.  Are you sure their approval letter didn't say that they reserve the right to pursue collection of the deficiency?  If it does indeed say that, then this is just more evidence of the reality that the left hand many times doesn't know what the right hand is doing.  Your suggestion to send BOA a copy of their own approval letter and demand the debt be shown on the borrowers credit as settled.

Hi Mike,

Yes, 100% without a doubt!  I almost copied it verbatim in my post.

Here it is verabatim:

The owner of your mortgage note, the mortgage insurer, if your loan is covered by mortgage insurance, and Bank of America, N.A. waive their right to pursue collection of any deficiency following the completion of your short sale and your debt is considered settled...


Your involvement in the current situation is outside the course and scope of transacting real estate. Your involvement should have effectively ended once the deal closed. If I were you, I'd refrain from giving the seller advise and refer them to their attorney.

I get you.  But their also personal friends of mine.   He's smart and knows that I'm not

giving legal advice and that he should take it to his attorney if he needs to push the issue. :)

Customer service NEVER ends at closing! I would not consider having a client forward a document back to the generator of the document as LEGAL advise. However, I always have a disclosure signed by all clients informing them to seek LEGAL advice from their real estate attorney.


DeYanna.... assisting your client in finding someone whose legally qualified in interpreting the legal document (yes, a short sale approval letter is a legal document) and advising them on how to proceed with the bank IS Customer Service.

Listen to Vanessa, she will keep you from getting sued!  This is why the seller should always have an attorney advise them on the approval letter!

I agree with Vanessa!  It is fine to provide them with a copy but would not offer advice.  They need to seek legal council

Had this happen to a client with BofA where they kept getting bills for the outstanding balance.

Because they're interfacing with investors and MI companies this file will likely live in their computer system in "zombie" state for up to 90 days.

Send a certified letter with a copy of the approval letter to the CEO's office or something similar.



Here's another paragraph in the B of A approval letter that basically gives B of A the right to persue deficiency:

'If it is subsequently determined that the approval of the short sale was based, in part, on information which B of A later determine to be false or mispresented or fraudulent, B of A reserves the right to persue the remaining balance of the note.

Wow, I don't think I could ever tell my clients, sorry, but that's outside the scope of transacting real estate, I can't help you, too bad, so sad.

This is within the scope of service after the sale IMHO.

I don't see anything wrong with him telling them to send BofA their own letter. I'm quite sure he advised them to see legal advice as well.

We WANT our clients to call us after the sale, who else are they going to turn to? Its our job to point them in the right direction, whether it be an attorney, CPA, whatever.

I agree you will be there first contact.  I have to be there after the sale.  Now with that being said I think Vanessa was imply from a liability aspect.  So IMO I think we could tell them "if I were in your shoes this is what I'd do and that of course I'm not a legal person.  And perhaps you want  to consult your attorney bla bla bla...."



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