Bank of America announced recently that they would be introducing a program intended to give some of its customers facing foreclosure the option to remain in their homes. The catch? Homeowners would relinquish their ownership in the home and only occupy the house as a tenant. The program is being called a "Mortgage to Lease," and it is a program that will be limited to about 1,000 customers who qualify. The program has been deemed a pilot program, being limited to markets in the three hardest hit states: Arizona, Nevada, and New York. Participants in the program will transfer their home's title to the bank and in turn, be forgiven for their outstanding loan balances.
Under the program, customers can lease a home for up to 3 years at a rent lower than their existing mortgage. Bank of America plans to employ property management companies to oversee the rentals, too. With success of the program the Bank plans to expand and involve real estate investors who would be able to play a similar role.
Fannie Mae started a similar program in the past as an alternative to foreclosure. That program, called Deed for Lease, allows struggling homeowners to transfer their titles in exchange for a one-year agreement to remain in the home. This program is available in Florida unlike Bank of America's trial lease program
If you are facing foreclosure and have not sought the help of an attorney, contact one today. A Jacksonville Foreclosure Defense Attorney can help ensure the remedy that you seek fits your particular set of facts and circumstances.