Over the years I’ve seen the banks hold little to no regard for the customers they serve. Their philosophy has essentially been ‘You can’t pay your mortgage, then out on your butt you go!’
Forget that they’ve screwed people, or caused the worst recession in 80 years.
Forget that homeowners often have good reasons for not being able to pay. Banks have had very little heart and even less common sense.
So I was blown away by Bank of America’s new test program, called “Mortgage to Lease”, which was unveiled this week. In a few select markets, BofA will give about 1,000 customers facing foreclosure the chance to stay in their homes by turning them into renters.
Bank of America will offer these borrowers the opportunity to have their mortgage debts forgiven, and instead of kicking them to the curb, BofA will lease these homes back to the borrower for up to 3 years for less than the market rental rate.
No more mortgage, no more property taxes or homeowners insurance! And people can stay in their homes! Imagine that!
Turning foreclosure properties into rentals is an idea I’ve long advocated. It only took Bank of America a few years to listen to me!
I was wondering why now, what finally turned Bank of America over to my way of thinking?
I could tell you that Bank of America’s small heart grew three sizes like the Grinch’s, but we all know that’s not true.
The answer is “Project X”. Not a top secret government project, just a movie that came out a few weeks ago. In the film a few teens throw an over-the-top house party and their neighborhood literally goes up in flames.
Any why would a teen comedy catch banking executives’ attention? Because it inspired a wave of copycat parties, where hundreds descended on homes and treated the properties like their own personal playgrounds.
Where the movie’s party took place in one of the main character’s homes, these copycats happened in abandoned houses.
I can almost guarantee most if not all of these parties were in foreclosed homes, now owned by, you guessed it, the BANKS!
And there’s your answer. I don’t think it’s a coincidence that a few weeks after Project X inspired these crazy parties, that Mortgage to Lease came about.
Bank of America didn’t want to be responsible for cleaning up any more damaged homes, Or heaven forbid they have another death on their hands.
It’s better for them to take a financial hit and keep their customers in their homes.
Occupied homes means better neighbors, less crime, more stable neighborhoods, higher home values and no Project X in your own backyard!
As I’ve always said, it comes down to common sense. Abandoned home are good for no one, not even the banks.
If Bank of America had just listened to me from the get go, they wouldn’t have to worry about Project X, rather they could have allowed us to continue to ‘Occupy our Homes’!
Tags: america, bank held, Bank of America, banking, borrower, causes of the financial crisis of 2007 2009, finance, foreclosure, homeowners insurance, lease, leasing programs, MERS, mortgage, occupy our homes, personal finance, program, project, project x, projects, Real Estate, real property law, renter, subprime crisis background information, test, testing