Attorney Christopher Charles recently settled $3,734,000.00 in mortgage debt with Bank of America for the price of $1,620,000.00 via short-sale negotiations. The debt was secured by a luxury home in Scottsdale. The property was secured by a mortgage in first position serviced by Bank of America in the amount of $1,509,000.00. Bank of America also had a second mortgage secured against the property in the amount of $2,225,000.00. Mr. Charles successfully persuaded Bank of America that both loans were non‑recourse under Arizona anti‑deficiency statute and that the loan in second position was essentially unsecured because the property’s fair market value was approximately 1.6 million dollars. After considerable negotiation and legal argument, Bank of America agreed to accept payment in the amount of $1,620,000.00 as full satisfaction of the borrower’s debts. In other words, Bank of America accepted $1.62 million as payment in full for over $3.8 million in debt. The transaction closed escrow last month and Bank of America not only released its liens against the property but provided the borrower with a written settlement agreement confirming that the debt had been fully satisfied and repaid.
Our short-sale team regularly settles debt for less than the amount owed through short-sales and other legal strategies. If you or someone you know has questions regarding their distressed property, please contact our office now to schedule a consultation with Attorney Christopher Charles or one of the other members of our short-sale team.