Last month, Bank of America announced a pilot program that will provide some distressed property homeowners with a new foreclosure alternative. This new "Mortgage to Lease" program will allow homeowners facing foreclosure to remain in their homes by converting from home ownership to rental.

In this program, participating homeowners will transfer their home titles to Bank of America for forgiveness of all outstanding mortgage debt. Then Bank of America will lease the home to the former homeowner for up to three years at a rental price less than their mortgage payments, making payments affordable. After the three-year rental period, Bank of America will sell the acquired houses to investors.

For now, the "Mortgage to Lease" program will only affect 1,000 specifically selected Bank of America customers in Arizona, Nevada, and New York. During this initial phase, Bank of America will explore customer, community, and investor reactions and assess the feasibility and practicality of expanding the program.

In order to qualify, the homeowner must meet the following criteria:
  • Have a Bank of America loan without junior liens
  • Be delinquent 60 days on their mortgage payments
  • Be "underwater" on their mortgage
  • Must have exhausted other foreclosure alternatives
  • Foreclosure must be eminent
  • And the homeowner must be occupying the home
Because this program has received national media attention, you may receive questions from homeowners about it. If you do, you can simply explain that this program is tiny and for now will affect less than one-tenth of one percent of all the homeowners with a problem. Remember, Bank of America will be hand-selecting and notifying homeowners for the initial launch.

UPDATE: Bank of America is adding new requirements to their short sale process starting April 13. Alex will give you all the details April 10 on a special, critical update broadcast. Register for the broadcast at http://www.cdpelive.com/120410-bofa.
 
Post is included in group: Short Sale Specialists & Pre-Foreclosure Education
Post is included in group: Short Sales Specialists
Post is included in group: Realtors®
Post is included in group: Certitifed Distressed Property Experts
Post is included in group: Short Sale REALTORS®

1 Comments on Bank of America Announces New Pilot Program

APR
04
2012
191,909 Points 2 Featured Posts Outside Blog

I wonder how they are getting away with this?  Now, banks are in the real estate business of rentals.  It is similar to a "deed in lieu", but not for the purpose of selling the property by the bank... but to hold onto it, as an owner / property manager. 

It's like having Wal-mart create their own bank for the purpose of lending to their customers to sell them products.
10:29am • #1


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Alex Charfen

Austin, TX

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Charfen Institute

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