I read with interest the announcement from Bank of America today regarding the new Pilot Program through which homeowners who were in danger of foreclosure/default proceedings would turn over their deeds to their homes and become renters.
The aim of this Foreclosure to Rental Program is to create a process through which distressed home owners will eventually be able to ‘buy back’ their homes by restructuring their debts and obligations while paying rent for a period of time.
Just about this time, almost two years ago, my brother and I had an extensive conversation about an idea he had about restructuring the loan process to deal with the crisis of distressed housing. He wondered what I thought of the idea since I was in the real estate industry. I thought his concept was fascinating! In fact, he wrote a series of blog posts about his thoughts and I shared Parts 1 & 2 on my Active Rain Blog in April of 2009.
Here’s a link to his SOLUTION in which he explains the process of restructuring through a Lease Buy Back Program. It just shows that you never know where insightful ideas can come from… Bambo Bamgbose is a CPA and Executive with E-Management, a IT firm based in Silver Springs, Maryland.
According to the Press Release, this program is targeting homeowners who are underwater on their home loans and are delinquent by at least 60 days.
The move is intended to stabilize communities and home prices by allowing more home owners to stay in their homes and reduce the high costs associated with the foreclosure process.