Bank of America Announces Mortgage to Lease Pilot Program
April 2, 2012
On March 23, 2012, Bank of America (BoA) announced that it was going to be offering a limited number of delinquent borrowers an opportunity to leaseback their homes after agreeing to execute a deed-in-lieu of foreclosure. The bank said that it will be sending out approximately 1,000 letters to borrowers in Arizona, Nevada, and New York offering them a chance to participate in a Mortgage to Lease pilot program. Borrowers meeting eligibility requirements will have their outstanding mortgage debt forgiven, any deficiency judgment waived, and be provided a lease agreement for up to 3 years. In a letter sent to regulators on March 28, 2012, NAR President Moe Veissi urged regulators to take a cautious approach when evaluating the benefits of these types of programs versus other foreclosure prevention efforts that focus on keeping families in their homes as homeowners, including the Treasury Department’s HAMP and HARP programs.