Bank of America has launched a pilot program aimed at allowing homeowners facing foreclosure to stay in their homes by renting them back from the bank.
The program is called “Mortgage to Lease” and in short, this is how it would work. The property owner would transfer title of the distressed home to Bank of America. In exchange, the bank would forgive any outstanding debt and lease the home back to the owner for up to three years at or below the current market rental rate. The thinking is that the transfer of the deed would be less costly for the bank than pursuing the foreclosure and would do less damage to the owner’s credit.
The pilot program is limited to Bank of America customers who are over 60 days delinquent on their mortgage payments and have explored other foreclosure relief options. The bank is reaching out to 1,000 homeowners in states that have been hard hit by foreclosures, including Arizona, Nevada and New York, and based on the success of that effort will expand from there.
- Another Look at Renting Out Foreclosures
- February Housing Report: Low Inventory/Foreclosures, High Contract Activity
This article originally published at https://dc.urbanturf.com/articles/blog/bank_of_americas_foreclosure_renting_solution/5326.
Most Popular... This Week • Last 30 Days • Ever
There are five projects in the works around Audi Field which could bring nearly thous... read »
If you make your way through downtown Bethesda, it seems like there is a new project ... read »
Today, UrbanTurf is taking a look around DC to see where home sellers are reducing pr... read »
The late senator's Spring Valley home has hit the market, and new photos offer a look... read »
The Post will stay downtown; a look at DC renters who are renovating; and the residen... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro