Bank of America says it is considering giving unemployed homeowners nine months of no mortgage payments while they search for a new job.
If during the nine-month forbearance period, the customer is successful in finding employment, Bank of America would structure a mortgage loan modification based on the borrower’s new income.
Customers who enter the program must be willing to relinquish the home through a deed-in-lieu arrangement if they haven’t found new employment during the nine-month timeframe, and would be given a minimum of $2,000 to help with the transition.
The North Carolina-based bank stressed that the proposal must be approved by regulators before it can be implemented, but market observers are calling it a positive step in the fight against foreclosure.
A Bank of America spokesperson told DSNews.com, “Sustained recessionary impacts and their affect on the unemployed, in particular, demand we consider creative solutions above and beyond what is currently available to put these customers in the best possible position to sustain homeownership. We continue to evolve our home retention programs to meet the changing needs of our customers and to reflect the insights we are gaining through our experience in assisting our customers.”
Article from: http://www.dsnews.com
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