Southwest Florida Title Insurance & Real Estate Blog -

A short sale with no deficiency judgement

is something that Winged Foot Title has never experienced!

As of the 21st of July, 2010, our office had never received a Bank of America short sale approval letter that relieved the borrower from future liability or from the pursuit of the deficiency after the short sale.

We hope that this marks a meaningful change in the way Bank of America deals with post-short sale deficiency issues.

In the past, a Bank of America short sale approval letter has stated,

“BAC Home Loans Servicing, LP and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above.”

The most recent Bank of America short sale approval letter we have received has significantly different language,

“Upon receipt of the agreed amount, BAC Home Loans Servicing, LP, and/or its investors will waive the remaining balance due on the above referenced loan and release the borrower from further obligation therein, and waive all rights to pursue further judgment or deficiency.”

Out of the hundreds of Bank of America short sales that we’ve encountered, this is the first (and only) we have seen that has no deficiency judgement.

To be honest, we’re completely shocked.

We will be making available the only Deficiency Evaluation Tool (DET) that we have seen.

We may even be able to create a checklist to determine the likelihood of deficiency waivers for Bank of America-serviced FNMA loans.

Here is the pre-approval letter for the Bank of America short sale for your browsing pleasure.

If you’d like to learn more about this interesting new development in short sales check out this more in-depth article on

If you have any real estate or short sales questions – please don’t hesitate to contact us, or call us at (239) 985-4142. We service all of Southwest Florida including: Fort Myers Estero, Bonita Springs, Naples, Cape Coral, Pine Island, Punta Gorda, and Port Charlotte.


2 Responses

  1. Roberta Diefenderfer Says:

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    Posted on September 29th, 2010 at 8:20 pm

  2. 2: Short Sale Process – What Do I Need To Know About The Note & The Mortgage? | Home Closing Process Says:

    […] after you’ve thought about these technical issues is how the potential worst case scenario deficiency judgment could affect you. The effect of a money judgment is governed by state law. A full analysis of the […]

    Posted on March 14th, 2012 at 9:06 pm

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NOT LEGAL ADVICE: This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to assure that this information is up-to-date as of the date of publication. It is not intended to be a full and exhaustive explanation of the law in any area. This information is not intended as legal advice and may not be used as legal advice. It should not be used to replace the advice of your own legal counsel.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.