Bank of America announces changes to deficiency judgements on short sales with a second mortgage.
As part of the settlement with the Department of Justice, Bank of America’s policy on pursuing deficiency judgments for second mortgages now includes a waiver of their right to pursue a deficiency if:
- The short sale was initiated on or after June 1, 2012.
- The first mortgage is also by owned by Bank of America and it is “attached” to the first.
This policy became effective June 1, 2012.