Bank of America and Green Tree just approved this Indian Lake condo unit, Destin Florida for short sale. This was an investment property, never occupied by the owner. Here are the details:
Bank of America – Senior Lien – Balance: $165,000 appr
Green Tree Servicing – Junior Lien – Balance $16,500
Sale Price: $65,000 appr
: In this case, Green Tree
had recently taken over the servicing for the junior lien, which was previously held by Bank of America
. We asked Bank of America for $3000 to pay the junior lien, Green Tree, from the sale to release its lien. They agreed. Green Tree was going to issue an approval, but would not mark the account settled or “paid in full for less than full balance”, for the $3000. I asked Green Tree what it would take to “settle” the account, so the seller would not have a deficiency judgment
. They requested $6000 total. The seller agreed to pay the difference, or $2070 above what Bank of America was paying Green Tree. Bank of America also waived its deficiency
and will not pursue the seller for the remaining balance of the mortgage note. Destin Florida property owners who are considering short sale to avoid foreclosure of non-owner occupied property should be prepared to contribute a dollar amount to all liens to “settle”, with either a cash contribution, a promissory note, or both.
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: [email protected]