Bank of America tests Alternative to Foreclosure

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BofA Tests an Option to Foreclosure

Bank of America is launching a pilot program that will allow homeowners at risk of foreclosure to hand over deeds to their houses and sign leases that will let them rent the houses back from the bank at a market rate.

While the initial scope of the “Mortgage to Lease” program is small—the bank began sending letters Thursday offering leases to 1,000 homeowners in Arizona, Nevada and New York—it represents a big change in the way banks deal with borrowers who can’t afford their mortgages.

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2 Responses to Bank of America tests Alternative to Foreclosure

  1. Mario says:

    Yes I saw this too and thought of you also. However in this case they aren’t giving people a rent-to-own option. It’s just a rent option where “investors” get to own the property. Ummm that sounds more like a GIGANTIC wealth transfer from Americans to “investors.” Outrageous imho.

    Reply

    WARREN MOSLER Reply:

    true
    :(

    Reply

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