Quote:

Participants will transfer their home's title to the bank, which will then forgive the outstanding mortgage debt. In exchange, they will be able to lease their home for up to three years at or below the rental market rate. The rent will be less than the participants' current mortgage payments and customers will not have to pay property taxes or homeowners insurance, the bank said.

Quote:

The bank based in Charlotte, N.C., said it will at first own the homes, then sell them to investors. If the program is successful, it could be expanded to include real-estate investors who buy qualifying properties and keep the occupants on as tenants.

"If this evolves from a pilot into a more broadly based program, we also see potential benefits from helping to stabilize housing prices in the surrounding community and curtail neighborhood blight by keeping a portion of distressed properties off the market," Sturzenegger said.

http://www.huffingtonpost.com/2012/03/23....

Legacy Asset Servicing Executive?

Who would buy these "vehicles"? Knowing what sort of upkeep is involved, the fact that the renters have no skin in the game anymore and the place could be trashed...

I know it's more magic to keep from having to realize the whole loss, but ****, how much crack were they smoking when they came up with this?

Would the net be a case of rent controlled real estate like some apartments in NYC? That takes a government subsidy, doesn't it?

Yeah, We'll get stuck paying for bankster cheese again if this one happens.

This means BAC is desperate for cashflow. Some rent (which is 1/2 the cost of the previous mortgage) is better than nothing. Plus it's easier to evict tenants than it is to foreclose. One problem is that if you haven't been paying a mortgage for a while, why would you switch to this program as a tenant, when you could probably live another year rent free.

It also makes it easier for the bank to just get the title, instead of having to go through their fraudulent foreclosure process.

BoA obviously wouldn't be doing this if it didn't benefit the bank - no write down + SOME cash flow - I bet they sweeten the deal and offer to sell it back to them in 3 years at mkt rate as soon as they can get congress to put the taxpayer on the hook for the loss. - The "Saving the American Dream Act"... I can see it now.