I read with interest the announcement from Bank of America today regarding the new Pilot Program through which On the edge - photo credit, Lola Auduhomeowners who were in danger of foreclosure/default proceedings would turn over their deeds to their homes and become renters.  

The aim of this Foreclosure to Rental Program is to work through a process through which distressed home owners will eventually be able to 'buy back' their homes by restructuring their debts and obligations while paying rent for a period of up to three years.

Just about this time, almost two years ago, my brother and I had an extensive conversation about an idea he had about restructuring the loan process to deal with the crisis of distressed housing.  He wondered what I thought of the idea since I was in the real estate industry.  I thought his concept was fascinating!   In fact, he wrote a series of blog posts about his thoughts and I shared Parts 1 & 2 on my Active Rain Blog in April of 2009.  

Here's a link to his SOLUTION in which he explains the process of restructuring through a Lease Buy Back Program.  It just shows that you never know where insightful ideas can come from...  Bambo Bamgbose is a CPA and Executive with E-Management, an IT firm based in Silver Springs, Maryland.

According to the Press Release, this program is targeting homeowners who are underwater on their home loans and are delinquent by at least 60 days.  

The move is intended to stabilize communities and home prices by allowing more home owners to stay in their homes and reduce the high costs associated with the foreclosure process.  What do you think?  Will this work?

 

 

Lola Audu, CRS, GRI e-Pro ~ Audu Real Estate

Lola Audu, is the Designated Broker & Owner of Audu Real Estate.  Our company specializes in helping people buy and sell homes in the greater Grand Rapids, West Michigan area. You can contact us via e-mail @ info@auduhomes.com or by phone at 616-791-0511. Thanks for visiting our blog.  Here are links to some of our most popular posts for you to enjoy!

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6 Comments on Turning Foreclosures into Rentals...A Solution to the Housing Crisis?

MAR
23
2012
589,757 Points 56 Featured Posts Outside Blog Called Shot Master

Hi Lola, I think this will prove to be a worthwhile idea for those home owners, who are struggling with their mortgage payments for various reasons. This will give them a chance to re-claim their homes after a two or three year period. I will also check out those recommended posts from your brother too.

Have a Nice Weekend!
12:42pm • #1
367,616 Points 145 Featured Posts Localism Sponsor Outside Blog

Hi Jerry, Thanks for stopping by to read and comment.  It was so interesting to see this announcement today.  When we first discussed the concept a couple of years ago, I encouraged him to put his thoughts in writing.  It's interesting to review those blog post in light of recent developments.
12:45pm • #2
873,962 Points Outside Blog Called Shot Master

Lola - It could be a good idea, because many home owners cannot qualify for refinance and can't afford mortgage payments.
2:22pm • #3
367,616 Points 145 Featured Posts Localism Sponsor Outside Blog

Hi John,  something has to change.  The losses are staggering.  The average foreclosure is a loss to the lender of 40-50% of value, not to talk about the continuing impact of the distress sale on other homes within the community.  
3:16pm • #4
MAR
25
2012
118,280 Points

I don't think so I wish they would just clear the invatory and be done with it... Credit Score 
6:08pm • #5
MAR
27
2012
1,453,125 Points 46 Featured Posts Outside Blog Called Shot Master

I think it is a good idea to give people a second chance . I hope the program will help home owners .
5:01am • #6

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Lola Audu~Real Estate Broker/Owner Grand Rapids, Michigan Real Estate

Grand Rapids, MI

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Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate

Address: 3659 Alpine NW, Suite 102, Grand Rapids, MI, 49321

Office Phone: (616) 791-0511

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