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 http://dc.urbanturf.com/articles/blog/bank_of_americas_foreclosure_renting_solution/5326
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