With the beginning of Bank of America’s trial “Mortgage to Lease” program, analysts, critics, and homeowners alike are all wondering if the program will actually work.
The fact that the idea isn’t new and has been tried before – with less than stellar results – might cast some doubt on the process.
The current trial plan calls for up to 1,000 underwater mortgages to be transferred to leases, under which the current homeowner will be allowed to live in the home for up to three years in exchange for handing over the deed to BofA. The program would allow these underwater homeowners – who owe more on their mortgages than they are currently worth – to stop foreclosure or avoid it altogether and spare themselves the serious consequences of the foreclosure process, all because they could not reach some acceptable loan modification with the lender or find some other way to halt foreclosure.
The fact that the idea isn’t new and has been tried before – with less than stellar results – might cast some doubt on the process.
The current trial plan calls for up to 1,000 underwater mortgages to be transferred to leases, under which the current homeowner will be allowed to live in the home for up to three years in exchange for handing over the deed to BofA. The program would allow these underwater homeowners – who owe more on their mortgages than they are currently worth – to stop foreclosure or avoid it altogether and spare themselves the serious consequences of the foreclosure process, all because they could not reach some acceptable loan modification with the lender or find some other way to halt foreclosure.
No comments:
Post a Comment