Bank of America = Rentacenter
Some might consider homeowners facing foreclosure (especially in Arizona, Nevada, and the Big Apple) the luckiest sons-a-bitches on earth. Or are they? Bank of America is now offering a select few homeowners who are about to go toe-to-toe with foreclosure the chance to stay in their homes – but as tenants. I call it Rent-A-Center housing. They call it, “Mortgage to Lease.” Some feel the chances of meeting the criteria (listed below) required for “Mortgage to Lease” eligibility are as good as Nicholas Cage actually making a decent movie (by the way, what’s up with that guy’s hair?).
Mortgage to Lease Criteria:
· Have loans owned by Bank of America
· Are delinquent for more than 60 days
· Have exhausted modification solutions or have not responded to alternatives to foreclosure
· Have high loan balances in relation to their current property value
· Face considerable risk of ultimate foreclosure
· Have no junior liens
· Are still occupying the home
· Have adequate income to make an affordable rent payment
And the cherry on top is that participants will be selected on a strict solicitation basis. In this trial phase, there are fewer than 1,000 customers who will be invited to the party.
What is a deficiency judgement? A DF is when the bank allows a short short sale or simply forecloses on your house, but then they sell your house. The amount you owe is generally the amount you owe minus the amount of the sale. So if you owed $400,000 and the bank shorted the house for $200,000, there could be a deficiency judgement for $200,000 levied against you.
For the lucky 1,000, titles will be transferred to the bank, and debts will be magically wiped clean from the record. Poof! Owners can lease their homes for up to three years, and their rental rate will be less than their mortgage. The new “Tenants” can even say “forget about it” to property taxes and hazard insurance.Sounds like a pretty sweet deal to me. Ok, so you have to give up your “homeowner” status, but who gives a rat’s ass when you consider the alternative – and let’s face it there county-boy, you ain’t cut out for homeless life on the mean streets.
The word slumlord comes to mind for some when BOA’s new program comes up around the water cooler, but I’m thinking more like….winning the lottery.