Bank of America just announced that they will adhere to recent government pressure and begin releasing 2nd liens and releasing their rights to pursuing the seller of a Short Sale.
What Bank of AMerica is offering is a result of the agreement with the Nations States Attorney Generals of the “Hardest Hit” states including California, Nevada, Arizona, Florida and more, that sued the major banks for recompense of the damages these states have felt from the mortgage crisis affecting the US over the last 5 years.
Also, this program mirrors the US Treasury’s HAFA guidelines…which releases the seller of a Short Sale from their debt once the sale has successfully closed. HAFA was established in March of 2010 and has been met with marginal success up until recent as pressure from the Feds has caused banks to rethink this program. Banks ann Mortgage Servicer’s are offering HAFA “approvals” more frequently and actually insisting homeowners participate in this Government backed program.
However you slice it…this is great news as many states do not have laws that protect homeowners like California’s Civil Code Procedure 580E initiated July 2011.
What does this mean? You can sell your “under water” home in a short sale and get rid of the negative equity without any repercussion. There are specifics to this rule, so give us a call to discuss your situation.
Keeping it real and factual!
Kris
