Bank of America launched a pilot program offering some of its mortgage customers who are facing foreclosure a chance to stay in their homes by becoming renters instead of owners.
About 1000 homeowners facing foreclosure in Nevada, Arizona and New York are test piloting this “Mortgage to Lease” Program offered by the bank.
Underwater homeowners who are struggling to make hefty mortgage payments are giving their homes to the bank and turning around and renting for up to three years at a lower monthly cost. If the program is successful, it may be rolled out in other states.
How to qualify for the program?
Participants must be at least 60 days behind on their mortgage, have a deficiency in the loan to value, no second mortgage, exhausted their mortgage-modification alternatives and make enough income to pay the rent. *The loan must be owned by Bank of America.
The goal of this program by Bank of America?
The goal is to see potential benefits from helping to stabilize housing prices in the surrounding community as well as, curtail neighborhood blight by keeping a portion of distressed properties off the market.
Homeowners can’t apply for the program. If you qualify, Bank of America will contact you. Fannie Mae has a similar program, though it is not widely used.
Will this program work?
Depends on the homeowner’s individual circumstance. While some might want to stay in their home, others might be better off moving.
How will the bank benefit?
Bank of America will avoid costs of foreclosure and earn money when the home is eventually sold.
Although this program is not yet available in Florida, contact a Tampa real estate attorney today to discuss your housing options. Attorney Michael Blickensderfer is experienced and able to assist you with your short sale transactions, loan modification or foreclosure defense. Call us today at 813-931-0840.