On Thursday, Bank of America introduced its pilot program to eligible homeowners who are facing the threat of losing their homes to remain in their properties by becoming renters. This program is an attempt to reduce the number and costs of the rising foreclosures by offering homeowners the option to turn over their title to the bank with the purpose of remaining in their properties for three years. Saddly, this may be a last resort for many homeowners who cannot afford to pay their mortgage and for many who need time to break emotional ties to their homes, if possible.
Since this is a pilot program, Bank of America is not offering this option to homeowners currently in foreclosure. There are advantages and disadvantages to this program. One of the advantages is that homeowners can stay in the property for a longer period of time. However, one of the disadvantages is that Bank of America’s program does not provide any alternatives for homeowners to regain title to the properties after the three year period has ended. Hopefully, Bank of America will find a cost-effective method that enables Bank of America to save costs while balancing the needs of the homeowners to permanently stay in their properties. Perhaps, Bank of America’s program will inspire other Banks to consider more-effective solutions to enable homeowners to stay in their homes. Only time will tell whether this program will serve as a boost for the economy or contribute to the staggering foreclosure cases in America.–Attorney Tamara Jordan, New York Attorney handles real estate, landlord and tenant, matrimonial, and consumer debt.
Tamara Jordan, Esq.
315 Madison Avenue, Suite 901
New York, New York 10017
1-800-379-2686
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