Bank of America Lets Foreclosed Homeowners Keep Homes By Renting
1 year ago
'Mortgage to Lease' program was launched this week
This week they rolled out their "Mortgage to Lease" program that will allow customers hit with foreclosures to keep their homes by becoming renters instead.
Fox News reports:
Participants will transfer their home's title to the bank, which will then forgive the outstanding mortgage debt. In exchange, they will be able to lease their home for up to three years at or below the rental market rate. The rent will be less than the participants' current mortgage payments and customers will not have to pay property taxes or homeowners insurance
In order to qualify for the program, foreclosure victims must have a Bank of America loan, be behind at least 60 days on payments and owe more on their mortgages than what their homes are worth.
The program is being tested in markets in Nevada, Arizona and New York. Nevada has the highest foreclosure rate in the country as of last month with one of every 278 getting hit. That's twice the national average. Arizona ranks third behind California. New York isn't doing as bad with one out of every 4,604 being foreclosed.
If the program proves to work, expect it to expand.