bank of america to rent back foreclosed houses
I know that banks prefer not to be landlords, but under the current circumstances, this foreclosure-to-rental pilot program seems like plain common sense.
Participants will transfer their home’s title to the bank, which will
then forgive the outstanding mortgage debt. In exchange, they will be
able to lease their home for up to three years at or below the rental
market rate. The rent will be less than the participants’ current
mortgage payments and customers will not have to pay property taxes or
homeowners insurance, the bank said.
Why did it take the mortgage industry so long to come up with this? --b.d.s.