By Alex J. Pearlberg, Esq.
So imagine you are behind in your FHA- backed mortgage, the property is way upside-down and you wish to exercise all of your loss mitigation options. As the homeowner, you have submitted all of the documents required by the servicer on your loan. Bank of America (BOA) and you have been denied for a HAMP loan modification. You have had the property listed for sale for over nine (9) months and have yet to receive an offer at anywhere close to the market value, much less the balance on the loan. BOA has sent numerous letters indicating there may be other alternatives, including a deed in lieu of foreclosure and monetary help in relocating. After thinking long and hard, you have decided to give up your homestead and surrender the property to the lender by way of a deed in lieu. One problem: BOA now indicates that “due to recent changes in FHA guidelines you must submit and proceed through the BOA short sale process and department.”