Principle Reduction by Bank of America in Seattle Metro [Video]

One of our Short Sale clients for a home in Lynnwood, WA, which is part of the greater Seattle Metro in Washington State, just sent us this letter about principle reduction.  The letter is from Bank of America stating that they are approved for a full principle forgiveness of their Home Equity Account.  The Heloc from B of A was a 2nd mortgage.  We were in process of getting a short sale completed, when B of A decided to go the route of principle reduction instead of short sale.  With this debt forgiveness our client is no longer in a negative equity situation, the payments on the home are now affordable and they even have a small smidgeon of equity.  B of A has supposedly sent out 200,000 of these letters as part of their Robo Signing settlement.  The robo signing settlement was the governments look into the foreclosure process by banks. Check out the video!

Video:

Video Transcript:

Hey, what’s going on everyone. Anton Stetner here with the Real Estate Solutions Group. I wanted to show you proof of actual principal reduction. I want to give you the back story here.
So we’re doing this short sale here in the city of Lynwood. That’s in Washington State, Greater Seattle Metro. What’s going on is we’ve been working through the short sale, got the buyer going, everything’s looking good. We’re just not even going to name who is the first is with, but the second was with Bank of America. And then the second was a home equity line of credit. Notice I just said “was.”

So this actually crazy, first time I’ve ever seen this, which is why I want to show it to you guys. This is the letter from Bank of America :  “You are fully approved for principal forgiveness on your home equity account.” Bank of America went through, and they forgave $164,713.87 for our client. Of course, our client is no longer a short sale, but we are so happy for them right now because they went from being in a huge negative equity situation to where they actually now have just a minute, small amount of equity. But by getting rid of that HELOC, it now allows them to stay in their property.

What we’ve been told is that Bank of America sent out approximately 200,000 of these letters. These letters were sent out in response to the robo-signing settlement as a way for them to pay down the amount that was owed.

So if you’re a short sale or an underwater negative equity person and you received one of those, awesome. We’re very happy for our client. If you’re one of those people that received this letter, hey we’re really happy for you guys. Our client is just ecstatic. I think we just earned a client for life. If you are in a negative equity situation and need to talk about a short sale, you guys have any questions, feel free to shoot us a call, an email, a text message, smoke signal.

Subscribe above, comment below. We’ll update you more as we go. This is Anton Stetner with the Real Estate Solutions Group. Laters.

 

Feel free to leave any comments or questions! 🙂

2 replies
  1. The Contractors Wife
    The Contractors Wife says:

    Anton- has your client made it to the end of the 90 day process? Did they receive their release yet.

    Reply

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