Skip to main content

Exit WCAG Theme

Switch to Non-ADA Website

Accessibility Options

Select Text Sizes

Select Text Color

Website Accessibility Information Close Options
Close Menu
Jacobs Legal Miami Foreclosure Defense & Consumer Protection Lawyer

Bank of America’s Latest Bluff – Watch Out for a Short Sale Approval Letter that Reserves the Right to a Deficiency Judgment

Make sure you have an experienced foreclosure defense attorney read your short sale approval letter before you agree to close. An alarming new trend is confronting underwater homeowners facing foreclosure in Miami and South Florida. Even if you do everything right to short sell your property, Bank of America may still want its deficiency judgment.

This week, Bank of America was foreclosing its a $1.2 million mortgage on a South Beach condo. The borrower got an approval letter for a shortsale at $750,000.00. However, there was a catch. The approval letter reserved the right for Bank of America to pursue a deficiency judgment. This result helps the bank a whole lot more than the borrower.

Don’t be mistaken, the worst thing in a foreclosure is not losing your property. It is getting hit with a deficiency judgment after losing your property. A deficiency judgment is given when the amount you owed was more than the appraised value of your property at the foreclosure sale. In my situation, the borrower still faced a $450,000 deficiency judgment if the short sale closed under that approval letter.

A strong foreclosure defense is vital to ensuring the best possibility of avoiding a deficiency judgment from an underwater mortgage. By forcing the bank to mediation, they had to assign a bank officer with decision making authority to resolve the case. That officer realized it wasn’t worth the money to fight through a hotly contested foreclosure. The decision actually came down an hour before mediation. The Bank agreed to amend its short sale approval letter and waived its right to a deficiency judgment.

If you are interested in a short sale or can’t afford to keep up with your mortgage payments for long, negotiate from strength. Don’t trust a lawyer who fights traffic tickets to fight your lender. Find an experienced trial attorney that knows how to negotiate with Banks.

Facebook Twitter LinkedIn

Immediate assistance in consumer protection and foreclosure defense is just a click away
Take the first step toward protecting your rights by filling out the brief below. Let us know your area of need, and we'll arrange a confidential consultation with one of our skilled, knowledgeable and dedicated attorneys.

By submitting this form I acknowledge that form submissions via this website do not create an attorney-client relationship, and any information I send is not protected by attorney-client privilege.

Skip footer and go back to main navigation