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BoA Considers Leasing Homes Back to Owners After Foreclosure

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Bank of America is considering renting homes back to borrowers after foreclosure, Housing Wire reports.

The plans are only in the beginning stages, but it could be a boon for homeowners looking to downsize after losing their homes and help sustain struggling communities.

It'd also help solve the problem facing many lenders struggling to find enough buyers for all the foreclosed homes left by the housing crisis — and we're not even halfway through this mess yet.

Ron Sturzenegger, who heads up the bank's legacy asset servicing division, explained the plan to HousingWire:

"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."

BoA launched a service at the beginning of the year to send representatives into communities to offer mortgage assistance to homeowners on the brink of foreclosure. More than 50,000 borrowers have participated so far, the company said in a statement Dec. 6.

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