HUFFINGTON POST: Bank of America says it has begun 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.
The “Mortgage to Lease” program, which was launched this week, will be available to fewer than 1,000 BofA customers selected by the bank in test markets in Arizona, Nevada and New York.
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, the bank said… (more)
EDITOR: Finally, some good sense. Foreclosure followed by vacancies usually loses over 30% of the value of the property. Instead of selling them to investors, as B of A plans to do, they should include the right to re-purchase at a discounted market price at the end of each lease year. This would be a win-win situation for both parties.
