BofA Considers Renting REOs Back to Former Owners
December 12, 2011
In facing large inventories of foreclosures, Bank of America is considering a program that would allow investors to buy a foreclosed home and then rent it back to the former home owner, HousingWire reports.
Bank of America is looking for ideas on how to handle the large inventories of foreclosures in some areas where demand hasn’t picked up.
"We are looking at programs where you can capture somebody before the REO process and offer a deed-for-lease," Ron Sturzenegger, who leads the bank's legacy asset servicing division, explained to HousingWire. "We would go to the customer and say, 'We'll do a short sale. Will you be interested in leasing your property back? We're still going to sell the property. You will no longer be the owner. But you can be a tenant now in that same property and save you from moving on.'"
The program is still in very early stages and more details need to be worked out, Sturzenegger noted.
Source: “BofA Developing Foreclosure Rental Programs to Deal With Distressed Properties,” HousingWire (Dec. 9, 2011)
Updated: November 23, 2020