We have sold our house through a short sale in December of 2012 in Oakland, California. The home loan was with the Bank of America (BofA), which agreed to accept a short sale for the sale price of $160,000.00. The value of the original loan was $470,000.00. Previously, in October of 2011, we received the short sale acceptance letter from BofA stating:
“Upon receipt of the agreed amount, Bank of America, N.A. 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. Bank of America, N.A. will report the debt as “settled for less than the amount owed” and issue a 1099 for the remaining balance.”
In May of 2013 the finally received the “Substitution of Trustee and Full Reconveyance” letter stating:
“The debt secured by the Deed of Trust
described above has been partially paid. Therefore, this reconveyance does not constitute a satisfaction of the debt. Absent a separate agreement in writing providing otherwise, the debt remains in full force and effect. This reconveyance serves only to release the lien of the Deed of Trust upon the property described therein”
After receiving this reconveyence letter, we are not concerned that a collection agency will try in the future to collect the deficiency balance. Please advise.