Bank of America Will Pay More Than $6k to a Junior Lien Holder on a Sacramento Short Sale

29 Jun

Bank of America Will Pay More Than $6k to a Junior Lien Holder on a Short Sale in Sacramento

Bank of America bringing a big pile of cash to pay of your junior lien during your Sacramento Short Sale

I have heard this time and time again: “Bank of America does not EVER pay more than $6000 to a junior lien holder during a short sale”.  I have been told this by negotiators, asset managers, attorneys, CPAs, homeowners, Real Estate agents and the list goes on…..

This is just plain not true.

Just to today I had this happen:
Just got off of the phone with a negotiator from Specialized Loan Servicing, they held a $142k junior lien on a short sale we have been negotiating, her words to me were “Wow, I have never seen Bank of America allow 10% to a junior lien, that must be due to your mad negotiating skills!”.

Click on the link to see a copy of the approval letter from Bank of America we received in June.

Last month we had clients who had a 1st lien with Bank of America for $414k and a junior lien of $100k with GMAC, which had ballooned to over $120k with all the late payments and penalties. Now the original negotiator at Bank of America said “We will only pay them $6k… blah blah blah” and GMAC negotiator was standing firm that they would not take a penny less than $12k and change…. we were at an impasse…. so we escalated the file, got it into the hands of a negotiator who understood the numbers and got Bank of America to agree to pay what GMAC was demanding….

Click on the link to see a copy of the approval letter from Bank of America we received in May

This is a lesson to agents, don’t believe what the banks tell you…. Banks DO NOT WANT TO FORECLOSE…. Keep pushing and pushing.

For those people with big junior liens there is hope if you use an agent who understands the way the banks really think and can keep pushing to get the short sale done. Once this short sale closes, due to California state law our client will have gotten rid of $309,000 in negative equity and will have ZERO tax liability and no chance of a deficiency judgement. Most of the time a short sale just plain makes sense.

 

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