Home > Avid Law Center, Foreclosure > BofA offers Mortgage to Lease Program

BofA offers Mortgage to Lease Program

In a new effort to help distressed homeowners, Bank of America has announced that it will be offering a Mortgage to Lease program that allows homeowners to stay as renters in their home.

The pilot program will launch in Arizona, Nevada and New York and will help up to 1,000 homeowners selected by the bank. If the program is successful, it may expand to other markets to help more at-risk homeowners in other states.

CNNMoney.com reports that homeowners cannot apply to be a part of the program. The bank will select homeowners that are more than 60 days delinquent on their home loans, have high loan balances in relation to their current property value, have no other liens on their property, and have an income level high enough to afford the rent.

According to CNNMoney.co, upon selection into the program, “the homeowner will transfer title to their property to Bank of America and have their outstanding mortgage debt forgiven. In exchange, they may lease their home for up to three years at or below the current market rental rate.”

The Mortgage Brokers Association estimates approximately 200,000 homeowners in Arizona, Nevada and New York who are 60 days delinquent on their loans but that includes all lenders, not just Bank of America, and it does not include homes in those states that are already in the foreclosure process.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s