Bank of America Tries Turning Fraudclosed Homeowners Into Renters

BofA tries turning distressed homeowners into renters

Bank of America is testing a mortgage-to-lease program in four states. The idea: Instead of evicting homeowners who face foreclosure, it lets them stay as tenants and sells the homes to investors (for pennies on the dollar).

Unable to qualify for modifications on Bank of America mortgages, a few of California’s most distressed homeowners are being offered one last chance to stay in their homes: Become renters instead.

Testing a mortgage-to-lease program in the Golden State, Bank of America Corp. sent 300 letters this week inviting borrowers without other options to apply. An additional 1,500 letters will go out in the next few weeks as BofA — which also is testing the program in three other states — evaluates whether a national rollout is feasible.

BofA plans to sell the homes to investors. It typically would recoup far less than what’s owed but would come out far ahead compared with where it would be after evicting borrowers, making “cash for keys” payments to help them move and selling empty and often vandalized foreclosures in the troubled housing market.

Rest here…

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4closureFraud.org

Comments
10 Responses to “Bank of America Tries Turning Fraudclosed Homeowners Into Renters”
  1. cloud97408 says:

    This Stinks. Smells of serfdom. The article says BofA owned the mortgage, hopefully they had a lawyer to confirm that. But a $90 difference, what is that…? .5 reduction in the interest rate, I think they are still screwing you Mr. Quezada, if you are such a person. I would not put it pass Bof A to spread propaganda….those broke MF’s

  2. MeeshaLin says:

    GMAC did somethinm similiar to me, they difference is they forced it. I went through a long battle with GMAC. They kept telling me they were going to give me a loan mod, the papers where on their way. I never got them. I called, and called, getting all sorts of lies. They foreclosed on my home without notifying me. They sold it without notifying me. I never knew I was living in my home racking up rent I owed GMAC. Some lady came to my house stating she bought my home on the county stairs. She said GMAC sold it. I told her there was a mistake and she should go get her money back. I knew someone who worked for a loan company. I called him a couple weeks later. He wasn’t supposed to do this for me but I asked him to check how my house was listed. He gave me the dates gmac did the default, foreclosure, the sale,also it was in someones elses name, for like a week he said then he said it was sold to someone that worked for GMAC, it was just wierd. He emailed me the info. I called GMAC they denied everything and said they were still working on a mnod for me. I get a letter in the mail from gmacs attorney suing me for rent. I fought gmac for a year and a half. I tried everything I knew but no one would help me. It sucked big time. I lost everything! I saved my money for years to buy that house! My dad who was a cop/34 years passed away, left me some money, I put it into that house. When I first bought it before financial struggles, my husband and I re did the floors, painted, new windows, landscaped, I was planning to have my own business/ photography out of my home, we made the back yard tropical, my husband was a flooring contractor, we did a lot of work ouselves. Also had to replace piping under and in front of house.etc. A lot was put into the home. My son talks of his room and how he misses it there, breaks my heart! My divorce just finalized, I live in an apartment with my son. Had to put it in a freidns name because my credit is shot. I go in and out of depression

    • Pamela Edwards says:

      I had the same thing happen to me.Now living with friends,my child is so depressed,we have no place to call home.My husband and I have our challenges but are working together to start over again.Put our everything into the great American dream only to have it crumble before our eyes.I’m sorry for your loss of your house never trust GMAC they are thugs and thieves.

    • To Tell The Truth says:

      Go file a law suit on everyone involved esp the attorney…they are doing some crooked things with the knowledge they have about the home sales and who are not paying attention/regarding banks involved.

  3. woodknotgo says:

    BOA cannot RENT houses they do not own !
    If they offer me Rent as a “better solution” than Foreclosure -it will be hard to answer them because I will be “laughing all the way to the bank” to tell them HELL NO.
    BOA you will die before you ever get another penny from me.
    TBTF not too big for Hell.

  4. jaclyn says:

    This is important to note. It has been taking place all over with mortgage companies that force you into foreclosure and default then offer to rent it back to you. Yes like the British Lords and the Serfs. The serfs get to live in their home if they pay a portion of their income from working the land to the Lords….same thing….slavery , plain and simple.

  5. Pamela Edwards says:

    If they were serious about getting thier money back then why would’nt they just refi.the houses to make the payments more affordable for the home owners rather than do this plan that essentially benefits no one especially the homeowners.Smacks of the British fuedilism system which came to nothing.Is this really what our world is coming to?JMHO.

  6. Ken Hansen says:

    This is dishonest to begin with, the Bank isn’t motivated by coming out “more ahead” then they would have. Their incentive was to foreclose, after getting 100 cents on the dollar (and after beating down the homeowner) renting is another way to get still more money out of the abused. The housing crisis has produced a new form of slavery, a newer form of sharecropping. all with the approval of our Government.

    • Hell No, No More Bail-OUTS says:

      Another subtle aspect is that the former homeowner is motivated not to vandalize. Now the condition of the house may be claimed to be deteriorated to some degree before the bank takes over, but the former owners are motivated to keep the home livable, unlike homes that have been gutted by fraudclosed and evicted former owners.

      The bank can sell the homes to investors more easily. No huge investment is needed to make the house habitable.

      Plus the new investor does not even have to seek out a tenant.

      Downside: that tenant is going to be hostile and COULD use a clouded title issue to sue the bank and the investor. Even with the signed ‘deal’ from the former homeowner, the bank may STILL have a clouded title.

      Title problems can be caused by not only the current mortgage, but also by prior mortages, especially if there were refis of the loan during the last 10 years or so.

      • charley rice says:

        OH NO HOMEOWNERS!

        It’s a DIVERSION PLAN to keep the HOMEOWNERS from finding out the THE REAL TRUTH of THE MASSIVE FRAUD that they ALL produced, FROM THE MORTGAGE SECURITIZATIONS..

        ALL MORTGAGE SECURITIZATION IS ILLEGAL AND CREATES FRAUD.
        U.S. Bank Nat’l Ass’n v. Ibanez, 941 NE 40 (Mass. 2011)

        ONCE YOUR MORTGAGE IS SOLD TO WALL STREET YOUR PROMISSORY NOTE WAS CONVERTED INTO A STOCK.

        THAT’S A BREECH OF CONTRACT BETWEEN YOU AND YOUR ORIGINAL LENDER, WHO’S THE RESPONSIBLE PARTY, & THE ONLY ONE THAT CAN FORECLOSE, BUT SINCE THEY SOLD IT TO WALL STREET THE CONTRACT OF THE DEED OF TRUST IS UNENFORCEABLE.

        YOUR ORIGINAL LENDER LOSES IT’S RIGHT TO FORECLOSE CAN’T ASSIGN ANYONE ELSE, AND IF ORIGINAL LENDER WENT OUT OF BUSINESS AND BANKRUPT THEN THAT DEED OF TRUST DIES BECA– USE YOUR ORIGINAL LENDER WAS THE ONLY ONE THAT COULD SUBSTITUTE.

        NOT MERS, RECONTRUST, NOT A SERVICER, NOT A TRUSTEE BECA– USE THE DOMINO EFFECT OF THE FRAUD STARTED AT THE MOMENT OF SECURITIZATION WHICH MAKES EVERY ACTION VOID.

        The government HAS ALREADY PAID the DEBT FOR ALL OUTSTANDING MORTGAGES…

        This BOA has been given government protection against losses on $118 billion in assets and has received $45 Billion in federal assistance, and the taxpayers. GOOGLE the Subprime 25 the Economic Meltdown..

        THIS BANK VIOLATING THEIR CONSENT DECREE, AND PROBATION, IS DOUBLE, TRIPLE, DIPPING ON SECURITIZED PROERTIES! AND THEY’RE NOT THE LEGAL PARTY IN INTEREST, ONLY THE ORIGINAL LENDER IS THE ONLY LEGAL PARTY.

        THE NOTES WAS DESTROYED WHEN THE PROMISSORY NOTE WAS SECURITIZED WHEN IT WAS SOLD TO WALL STREET..

        AND THIS IS WHY THEY’RE BRINGING FRAUD BY THE ROBO SIGNING, PRETENDER SERVICING, AND HAVE ALREADY CLAIMED THE WRITE OFF ON THE FRAUDULENT FORECLOSURE FROM THE GOVERNMENT AGAIN.

        SO NOW THE BANKS ARE DEFRAUDING THE GOV

        THE BANKS MUST HAVE PROOF OF ASSIGNMENT

        THESE BANKS HAVE BEEN PAID OVER AND OVER AGAIN… STOP THE LIES AND GIVE BACK THE HO– USES THAT YOU STOLE…

        YOU GOT BUSTED!!! KARMA IS A #@!

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