Bank of America looking into a Foreclosure Rental Program

Posted on 13. Dec, 2011 by Bryan Ives in News

A new rental program where a home is rented back to the borrower after foreclosure has caught the interest of Bank of America. “We are talking with investors that would come in and buy these houses and would lease them back to who would now be the new tenant” says Ron Surzeneggar, leader of the bank’s legacy asset servicing division.

BofA put together a division back in February specifically designed to manage the servicing for delinquent mortgages, loans no longer being written, and to work through outstanding representation and warranty claims. They have more than 35,000 employees analyzing 1.1 million loans that are 60 days delinquent or worse. The Federal Housing Finance Agency is also working with Fannie Mae and Freddie Mac in developing an REO rental program. The agency received more than 4,000 ideas on how to create and implement a plan.

According to Sturzeneggar, the basic idea within some of the programs they are looking into involves catching someone before the REO process and presenting them with a deed-for-lease. “We’re still going to sell the property. You will no longer be the owner. But you can be a tenant now in that same property and save you from moving on,” says Sturzeneggar. He also stresses the point that the bank, given reasonable bids, would still sell the REO as before but given the tremendous amount inventory in some areas the properties could sit for years.

Source: http://www.housingwire.com/2011/12/09/bofa-developing-foreclosure-rental-programs-to-deal-with-distressed-properties?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29&utm_content=Google+Reader

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