BOA now offering to rent back foreclosed houses

[in stitches]

Just saw this on CNN. Instead of kicking out Mr. Out of a job for 12-24 months, BOA is giving the homeowner an option to rent back the home.

Now, instead of carrying a bad assest, and incurring fix up and sell in a bad housing market costs, the bank can put the mortgage on hold and generate rental income in the interm until the homeowner can re-assume the mortgage. Bank is happy, homeowner is happy.

Brilliant.

 

[CYstyle]

lol we were discussing this in the other thread but didn't come to the same conclusion.

to sum up:

BofA now being the landlord will now have to fix up the houses they are leasing to the deadbeats. The guy who can't pay his mortgage also didn't fix his leaking roof, the slowly dying water heater etc.plus the bank now has to pay any homeowner association fees + property tax.

Plus who knows what kind of damage that person is going to do. Plus evicting the tennant after they stop paying rent. ugh, it's hard enough when you are the home owner. It's an entirely different story when you have to hire someone through the entire mess

http://realestate.msn.com/article.aspx?cp-documentid=13108360

The end result they may have come out better if they just auctioned off the house

 

[in stitches]

interesting. maybe they are going to be selective about how they decide who to rent back to. i missed the other thread.

 

[CYstyle]

heh we didn't have a dedicated thread like yours

If they are selective about it it could be good like you said, esp for their accounting purposes. I figure the former richer guys who still have pride may take that road, so that way they can still live in it and neighbors/coworkers/friends etc wouldn't know the difference.