Another Manufactured Default? Bank of America Program Allows Owners to Stay in Homes and Rent From the Bank

“Borrowers selected for the program must be at least two months past due on their mortgage and face considerable risk of foreclosure. Bank of America is reaching out to borrowers who have exhausted other alternatives to foreclosure or who haven’t responded to earlier solicitations. Homeowners with second mortgages or other liens won’t be selected.”

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Bank of America Program Allows Owners to Stay in Homes and Rent From the Bank

Bank of America Corp. BAC -2.24% 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.

Until now, banks have focused the bulk of their borrower outreach on modifying mortgages, usually by reducing the monthly payments. When that doesn’t work, most foreclosure alternatives require homeowners to leave their house, typically through a short sale, in which the bank approves the sale for less than the amount owed. Banks often insert clauses forbidding the new owner from renting the property back to the former owner.

The new approach is unlikely to be expanded unless banks conclude that avoiding eviction reduces costs associated with taking back, maintaining and reselling properties. If a significant number of borrowers are willing and able to rent the homes, Bank of America could ultimately sell the properties to investors that agree to keep them as rentals.

Already, in a growing number of housing markets, investors are buying foreclosures and converting them into rentals, often filling them with families that have gone through foreclosure.

Rest here…

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4closureFraud.org

Comments
15 Responses to “Another Manufactured Default? Bank of America Program Allows Owners to Stay in Homes and Rent From the Bank”
  1. Sal says:

    They are creating another shadow inventory, When all the foreclosures are sold, the will be foreclosed on again. After all, those who are foreclosing usually have no right to do so. The next phase of foreclosures will be just like this phase, with no proof of ownership of the note. This can go on for ever. Blame the judges. We need to find out what is being used as ‘leverage’ on these judges. They are committing crimes and they know it. Its either extortion, blackmail. I don’t think nearly every judge in the country can be bought off.

  2. readdocs says:

    Boy, to be a fly on the wall in that bank!

  3. Jason Werner says:

    If you are wondering if this is only a “bank” thing, consider FDIC v. me. FDIC begged me to rent my own house for more than a year in their delay-game of fake modifications of their banks’ and their fraud. So listen, this is coming from the mother of the thing: FDIC. My case can be found anywhere in the world by searching my name on PACER.

  4. Stan Francis says:

    They will offer this program to homes they can’t prove they own. BOA is crooked, avoid dealing with crooks.
    Pull your money out, do it today.

  5. Igor says:

    Everything would/could work out, if those involved in the process KNEW with out a question, if they violate the law, if they commit forgery, purgery, anything that is illegal, THEY WILL BE PROSECUTED TO THE FULLEST EXTENT OF THE LAW! Instead of passing laws that RE state past laws criminalizing fraud, we need the existing laws UPGRADED where violation of any law in regard to the mortgage or foreclosure process, will demand the govt seize all assets of the perp to pay off the victims and taxpayer. That and a guaranteed prison sentence of no less the 5 years, for the minor of offenses. Further, a law must be enacted that requires the reporting of fraud. If one fails to report it, they are guilty of a crime,. If they are afraid of self incrimination, that is not a defense, but it might be an avenue for a deal with the DOJ

    • cocodo says:

      The corrupt judges should be charged for allowing these illegal foreclosures and the banks FRAUD. We lost our home of 24 yrs illegally and were not in arrears and they never notified us of the sale nor was it advertised in the newspaper. We spent almost $40,000 in legal fees and the judge made a default judgment not based on the facts of law. It is so involved and the biggest illegal action I have seen or heard about. I am so sick of unethical people. Our son is a veteran and returned from his 2nd deployment to find us homeless and the only home he ever lived in was illegally sold. The war we are involved in trying to get our story exposed is killing me and I am losing my will to live. We lost a home that we were never in arrears and we never even had possession of the note and the security instrument was never recorded. We prevailed in the trial and produced evidence of all the violations and the Judges decision did not make an ounce of sense and he refused our Motion to Appeal. I am so sick of this injustice! MA AG and D of B are just as unethical.

  6. dRp says:

    Lied to at origination, prefunded securitization sold the house not to you, but to investors.
    Servicers refuse to identify the ‘owners’ to non-parties.
    You now have to prove it’s not their house.

    The “Potter-Town” bankers would have all be renters.

    “If the American People allow private banks to control the issuance of the currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.” Thomas Jefferson

    • charlie rice says:

      You’re right Bank of America is just a Servicer & they don’t even own the note to most homes… In addition just because you bought out Countywide doesn’t mean you own the note either. YOUR HOME WAS PROBABLY IN THE SUBPRIME GROUP and was SECURITIZED. THERE IS NO PARTY WHO HAS THE LAWFUL RIGHT TO ENFORCE A FORECLOSURE, AND THE PAYMENTS ALLEGED TO HAVE BEEN IN DEFAULT HAVE IN FACT, BEEN PAID TO THE PARTY TO WHOM SUCH PAYMENTS WERE DUE… These banks are in violation of the PSA because every home has to be recorded with the county recorder, and you have to have PROOF of the Chain of TiTLE Assignments. So most of the banks that went bankrupt or out of business probably didn’t even make the cut off date of the PSA or signed off your home. So that’s why the banks are Robo signing these documents and assigning themselves as trustee stealing these homes that they don’t own. The most important evidence to over turn these banks is in your DEED of TRUST number (24) Says only the LENDER has the power to assign, not MERS or RECONTRUST. IF YOU SEE ANY ONE OF THOSE TWO FORECLOSING THEN IT IS UNENFORCEABLE… SO PLEASE CHECK YOUR DOCUMENTS AND IMPEACH THEIR FRAUD AND SANCTION THE BANKS AND DISBAR THEIR DIRTY LAWYERS!!!

      • lvent says:

        @Charlie Rice….I am fighting 2 fraudclosures pro se…my commercial property and my home..In the case of my home I have a third party debt collector who has no legal assignment trying to fraudclose on MERS by joining me, the defendant…the bank attorney told me they have no legal assignment, there is no PSA agreement and there is no trust of trustee…I know the truth is…. that is because…. myself , the homeowner is the trustee because I have the stamped, recorded, paid deed in my possession..No legal lien was ever recorded in 19 years…The truth is they are trying to enforce a foreclosure by having WE THE PEOPLE FRAUDCLOSE ON OURSELVES…!! In the case of my Commercial property..I have a third party debt collector who is not a bank and was “sold” the defaulted MBS after the fraudclosure was filed trying to fraudclose..I have in my possession the stamped paid Deed Of Trust for my commercial property and legal assignment was ever recorded.

  7. Joe Testa says:

    The banksters are simply delegating this particular program to the foreclosure mill attorneys. The same way they delegate the fraudclosures to them. The spotlight needs to be on the banksters and also on those hired-gun attorneys that are the banksters’ accomplices in fraudclosure.

    If you’ve ever experienced trying to have one of those aforementioned attorneys provide you, through discovery, the name of the owner of your promissory note, you’d understand they are fully aware that they are defrauding innocent homeowners. They are dispossessing families from their homes and tossing them into the street like yesterdays garbage, while on the way to the bank to cask their ill-gotten checks. .

    How do they look their children in the face? Mr. Karma will someday visit each of those attorneys.

  8. gregory says:

    Mario this is the exact thing I have been saying These banks cant take care of paperwork ,they cant take care of empty houses how are they going to take care of full houses. This is already a problem with rental occupied housing that they fraudclosed on. I just cant wait to see…….

  9. lvent says:

    I have been screaming that this was their plan for the last 2 years..I figured that out almost immediately after being denied a loan mod that I fully qualified for……I cant believe anyone would fall for this scam…!! .What is the best way to steal a country…??? ? Make the masses think that you owe them money and that they own you..THEY DON’T…!

  10. To Tell The Truth says:

    Look like they have been reading my comments….wonder if they do have some monitoring these comments….

  11. Mario Kenny says:

    well that’s smart of them, they get deed in lieu, so that means they have clear title in their name, and the bank then gets a tenant paying the same price as the mortgage, but what happens if the tenant reports the home to the city if the house has defective construction issues, like the roof leaks, or the pipe brakes? or the pool has no fence?

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