St. Louis Mortgage Lending and In House Financing: BOA's New Rental Idea
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Franuh0msa (Talk | contribs) (Created page with "Bank of America is looking at a new program to rent a home back to the consumer after losing their home. "There are solutions we are looking in to," said Ron Sturzenegger, who...") |
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| − | Bank of America is | + | Bank of America is viewing an alternative process to rent a home back to the borrower after foreclosure. "There are real answers to these financial problems," said Ron Sturzenegger, who is heading the bank's legacy asset servicing division. "We want to meet with potential investors that would come in and purchases these homes and would lease them back to who would now be the same home buyer." |
| − | In February, BOA | + | In February, BOA started a new division to handle the servicing for delinquent mortgages, loans that are not being approved, and to sort out outstanding representation and warranty claims. As of today's date, about 35,000 employees at the bank are going through 1.1 million loans 60 days delinquent or worse, as presented by their third-quarter financial statement according to [http://www.stlouisrefinancinggroup.com/st-louis-mortgage-news/st-louis-mortgage-lending-and-in-house-financing-boa-rental-program St. Louis mortgage news reports]. |
| − | The Federal Housing Finance Agency (FHFA) is | + | The Federal Housing Finance Agency (FHFA) is devising an REO rental program for Fannie Mae and Freddie Mac. It received more than 4,000 ideas on [how to do it] says [http://kimtag.com/stlouismortgage St. Louis mortgage] experts. But private banks own [$50.4 billion] worth of REO properties, too, according to the Federal Deposit Insurance Corp., and millions of these homes are sitting vacant. Sturzenegger [described how their idea would work]. |
"[We are looking at programs] where you can [capture somebody] before the REO process and offer a deed-for-lease. [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,'" he said. | "[We are looking at programs] where you can [capture somebody] before the REO process and offer a deed-for-lease. [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,'" he said. | ||
