This past week the associate press published a story discussing a new Bank Of America program that is suppose to be designed to help home owners stay in their homes while avoiding foreclosure. This new program outlined in the newly published article from the associated press is interesting to say the least. Let me explain.
Bank of America’s new program is called “Mortgage to Lease” which in a nut shell gets a struggling homeowner to transfer their homes title to the bank to forgive their loan and in exchange the bank will rent the home back to the previous owner for 3 years at or below current rental rates. Once the properties title is in the banks possession it will then resale the property to an investor with a tenant in place.
This program gives the homeowner the false illusion of being able to keep their home while avoiding a foreclosure. Since banks have had the pressure put on them about fraudulently foreclosures by using robo signing and other corner cutting activities they have been scrambling to come up with new ways to continue to generate revenue for themselves at the expense of others.
Although this program is not all doom and gloom there is a potential upside. If you happen to be a Real Estate investor interested in purchasing bulk REO property direct from the bank this may be the best thing since sliced bread. Think about it for a moment, you as the investor have the opportunity to purchase discount foreclosures with tenants in place for 3 years, this would just require you to put up the capital find a good property management company then sit back and collect your rental income. I am sure BofA will factor a paying tenant into its asking price however it still is an attractive opportunity for an investor.
If you would like more information about buying in the bulk Las Vegas Real Estate packages or other Las Vegas Real Estate investments please feel free to contact me direct at 702-542-1883 or leave a comment below today’s post. Be sure to subscribe to this blog before you leave and don’t forget to share this post with your friends on facebook and twitter.
