Bank of America Foreclosure Rental Program In Early Test Mode.

BofA Foreclosure Rental Program In Early Test Mode!

Bank of America is testing a new idea that turns underwater borrowers facing foreclosure into renters in select states: Arizona, Nevada and New York. The program call Mortgage to lease is not available in California---among the states hardest hit by the housing crisis ---at least not yet.

This is a limited pilot program which only started about a week ago. Hopefully California will be consider in the future for this pilot program. This is how it works. Borrowers transfer title to their home to Bank of America, and in return they can stay in their homes for up to three years at an amount that's below their home loan payment. Homeowners in the pilot program will not be responsible for property taxed or hazard insurance. Bank of America also forgives the the outstanding loan balance.

Do I qualify? Only if you were among the less than 1,000 borrowers who were preselected by Bank of America. Those who were solicited have loans owned by the company have been behind on payments for more than two months, still live in the home and fit other criteria.

Why is this a limited program. The bank is still testing the waters of the idea with borrowers, investors and other. If Bank of America considers this test successful, then the company will broaden the program to involve real estate investors.

Why do this? The process of completing foreclosures both time-consuming and expensive for banks. So banks are constantly looking for ways to mitigate losses.

Courtesy of : Crescent Moon Realty, Inc.

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