We just received an approval for a Jacksonville short sale from Bank of America as the second lienholder. This particular loan was a HELOC which almost always means a particularly hard transaction these days. HELOCs are known for demanding cash at closing from the seller at an amount higher than most first lienholders will contribute. Often these demands are much higher than the seller, who is facing a hardhip, can even consider paying.
The basic theory is this...many lenders look as HELOC loans as "play money." From our experience working Jacksonville short sales with HELOCs as the second, an assumption is often made by the banks that the money was spent on vacations and "fun" stuff. As a result, there is more of a "punish the borrower" attitude that we have seen.
In this case we were able to obtain a Bank of America HELOC NO CASH CONTRIBUTION REQUIRED AT CLOSING approval for the Jacksonville short sale! Bank of America's approval indicated that they were willing to take only $3,000 to release the lien and allow the short sale to proceed.
