BofA tries turning distressed homeowners into renters - latimes.com
Testing a mortgage-to-lease program in the Golden State, Bank of America Corp. sent 300 letters this week inviting borrowers without other options to apply. An additional 1,500 letters will go out in the next few weeks as BofA — which also is testing the program in three other states — evaluates whether a national rollout is feasible.
BofA plans to sell the homes to investors. It typically would recoup far less than what's owed but would come out far ahead compared with where it would be after evicting borrowers, making "cash for keys" payments to help them move and selling empty and often vandalized foreclosures in the troubled housing market.
This is what should have been happening since 2007, but in the millions instead of the hundreds, and mandated by law instead of some baby-step experiment by a too-big-to-fail bank that is insolvent anyway. Thanks to Fred Pilot for the link.