Bank of America said Thursday that it would offer a small number of customers facing foreclosure the option to remain in their homes and rent the property instead. The program highlights how investors are increasingly interested in becoming landlords on troubled properties.
Thinking of renting your property? Contact the appraisers at www.scappraisals.com and have them do a rent comparable and income report for you; know the numbers before renting.
Under the terms of the pilot program, which will be offered initially to about 1,000 consumers only in New York, Nevada and Arizona, homeowners will give up the title to their property in exchange for bank forgiveness of their mortgage debt. They would then be able to rent the property for up to three years.
The rent payments would be less than the monthly mortgage payment and be set at or below market rates, according to bank officials.
At first, Bank of America would retain ownership of the properties before selling them to outside investors. If the pilot program, known as Mortgage to Lease, is successful, the bank could expand it.
A wide variety of institutional investors, including some large private equity firms, are weighing potential deals in the beaten-down housing market. Bank of America’s move could offer up potential properties for investors who are looking for opportunities.
Disclaimer: for information and entertainment purposes only
About 4 million homeowners who may have been improperly foreclosed upon in 2009 and 2010 are getting an opportunity to have their cases reviewed. Whether they will be reimbursed is up to the same lenders who are accused of moving too swiftly to seize their homes.
The Office of the Comptroller of the Currency said Monday that mortgage services will begin sending out letters this month that ask borrowers if they want their case reviewed.
The nation’s 14 largest mortgage servicers – including Citibank, Bank of America, JPMorgan Chase and Wells Fargo – were ordered to offer to review cases after the government found that some rushed the foreclosure process without carefully reviewing documents.
Read more at: http://www.signonsandiego.com/news/2011/nov/01/4m-homeowners-eligible-for-foreclosure-review/
Disclaimer: For information and entertainment purposes only.
I have yet to meet anyone that has gotten a mortgage loan modification. A lawsuit has been file in LA Federal Court against BAC (Bank Of America) alleging breach of contract. The suit involves permanent modifications through the U.S. Treasury-administered Home Affordable Modification Program which offer incentives to loan servicers who extend modifications as well as “proprietary” modification.
Read More: http://www.signonsandiego.com/news/2011/jul/05/borrowers-sue-over-apparent-loan-mod-mishaps/?ap
We would love to hear about your experiences with a loan modification problem.
I know a VP with an MBA. He was laid off from work and he went to his bank for a loan mod. Now this person is highly educated but it took him 30 hours to complete the application which included getting all the documentation together. After sending in his paperwork he did not hear back for a month and he called the lender and they stated they never received his paperwork. Well he sent it electronically and by registered mail and he still could not convince to them they received it. He resent the paperwork and waited a week and called. They got the packet but they needed additional documents (was not doc listed in application) . The docs were sent in. Next month the bank could not find application, next week needed more docs, etc. Sounds familiar?
Where to go for help? The banks? The government;?; depends. I recommend going to a non-profit group and have them help . They usually have updated info and they know all the programs. I had a client that I referred to:http://www.neighborhoodhouse.org/ . (Use to refer to ACORN too but you know what happened to them). If you do not know of one in your community call your local Health and Human Services and start asking if they know of a program in your community. Try your local food bank or co-op. Find out what attorneys in your area are taking on the big banks and they may have info you are looking for.
Good luck and don’t give up!!!!