Underwater and Want To Stay? B of A May Let You Lease Instead.

Not happening here in Santa Clarita Valley...yet.....but in the hard hit states of Nevada, Arizona, and New York, Bank of America is working on a leasing program that allows underwater homeowners to lease their home instead of lose it completely by Short-Sale or Foreclosure.

Yes, Bank of America would, in effect, be the new landlord.

The program is called Mortgage to Lease. You cannot contact them, they will contact you. Unfortunately less than 1000 mortgage holders will qualify for the program. There will be a few hoops to jump through, and, you won't own your house anymore either. But, it will let you stay where you are and not have the upheaval of a move after the catastrophe of losing your home.

The lease payment would be less than the mortgage payment. You can lease it for up to three years. The mortgage debt will be forgiven. And, B of A will now own the home.

Banks don't want the expense of a foreclosure. Looks like they are willing to take your home back to avoid that expense, but they are aware of the great rental market out there too.

So, gee, let someone pay the rent for 3 years, and then sell it when there has been a little appreciation? No foreclosure expense. I'm sure there is some tax credit for B of A too. And, them some income.

Sounds Like A No-Brainer to me....

Eligibility requirements for Mortgage to Lease

• Loan owned by Bank of America
• Delinquent for more than 60 days
• Already exhausted modification solutions or have not responded to alternatives to foreclosure, including short sale and deed-in-lieu
• A high loan balance compared to current property value
• Face considerable risk of foreclosure
• No junior liens
• Still occupying home
• Adequate income to make rent payment