If you know the basic rules about short sales then you know there’s always an uncomfortable worry.  A worry of whether or not a lender will choose to go after that unpaid balance a borrower is trying to rid him or herself of by selling their Miami Beach homes via a short sale.  While each lender has its owns reasons for choosing to or not choosing to pursue these unpaid balances, Bank of America is looking to ease these worries and reach a compromise.

In a proposed set of new rules, the bank would actually waive their right to seek deficiency judgments (those unpaid balances) during a closing if borrowers can legitimately prove that they cannot afford to pay the mortgages for their Miami Beach homes and no assets are available.  If it’s determined that borrowers can actually make those payments, a certain fee will be negotiated that homeowners would need to pay back.  If a borrower chooses not to share their financial information, they still face the risk of the bank pursuing those unpaid balances.

Overall these new rules seem like a step in the right direction and do give borrowers some peace of mind as well as a better idea as to whether selling their Miami Beach homes through a short sale is the right way to go.  What do you think?