Short sales are commonplace in today’s Palm Beach real estate market but they have that one critical factor that some homeowners still fail to realize and take into account: the uncertainty of knowing whether a bank will choose to pursue a borrower for the unpaid balance.  That twenty year limbo causes many to think twice before choosing the short sale route.

Thanks to Bank of America, that suspense may soon come to an end.

In what is likely to come as a huge sigh of relief to struggling homeowners considering a short sale, Bank of America is tweaking its rules regarding deficiency judgments. If borrowers can prove that they simply cannot pay the mortgage for their Palm Beach homes and have no assets, the bank will waive its right during the closing of a short sale transaction.  On the other hand if a borrower can indeed prove they’re capable of paying, a certain fee will be negotiated to be paid for the closing.  Borrowers who refuse to reveal their finances will still face the possibility of having to pay back the unpaid mortgage balance.

Are you in such a situation or considering a short sale?  Even if you aren’t, what are your thoughts on this latest move by Bank of America?