Hooray to Bank of America for being the first to step up to the plate with an innovative program designed to keep homeowners in their home versus foreclosure.
Too bad it didn't happen earlier, when so many Americans had to walk away from their homes because of the the money crunch in this country. Take a look at the program: BofA Tests An Option to Foreclosure.
If one has a $250,000 mortgage, for example, the bank is willing to lease it back to the owner at the going rent rate (e.g. $900.00) a month, versus a $1600.00 a month mortgage payment. Great deal.
Finally, banks thinking outside the box.
This coming on the heels of the health care reform, could give us little folks a lot more breathing room. Whew.
Bank of America would then get the title to the home, and give the homeowner annual options to renew the lease. What would be even better; If homeowners had the option to purchase back the home if, and when, they get back on their feet. Which is probably a given anyway.
Bank of America purchased Countrywide Financial in 2008. This pilot program applies to the existing loans that Bank of America still owns. It is encouraging that many investors' have already approached the Program Director Ron Sturzenegger, to buy pools of the leased properties.
According to Sturzenegger, the success of the Program depends on the expansion of the program. These are all encouraging signs for the economy. I hope that more banks and lenders get on the bandwagon.
We are ready for some good news for a change.
Too bad it didn't happen earlier, when so many Americans had to walk away from their homes because of the the money crunch in this country. Take a look at the program: BofA Tests An Option to Foreclosure.
If one has a $250,000 mortgage, for example, the bank is willing to lease it back to the owner at the going rent rate (e.g. $900.00) a month, versus a $1600.00 a month mortgage payment. Great deal.
Finally, banks thinking outside the box.
This coming on the heels of the health care reform, could give us little folks a lot more breathing room. Whew.
Bank of America would then get the title to the home, and give the homeowner annual options to renew the lease. What would be even better; If homeowners had the option to purchase back the home if, and when, they get back on their feet. Which is probably a given anyway.
Bank of America purchased Countrywide Financial in 2008. This pilot program applies to the existing loans that Bank of America still owns. It is encouraging that many investors' have already approached the Program Director Ron Sturzenegger, to buy pools of the leased properties.
According to Sturzenegger, the success of the Program depends on the expansion of the program. These are all encouraging signs for the economy. I hope that more banks and lenders get on the bandwagon.
We are ready for some good news for a change.
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