From the Category of... What can we do to save our asses and make it look like we are helping out the homeowner? comes this little jewel... (Courtesy DSNews.com)
BofA Proposes Nine-Month Forbearance Plan for Unemployed
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. (You'll Still Owe Twice what it is worth!)
Customers who enter the program must be willing to relinquish the home through a deed-in-lieu arrangement (translation - sign away your right to due course of law)if they haven’t found new employment during the nine-month time frame, and would be given a minimum of $2,000 to help with the transition.
(Does a job at McDonalds or Wal-Mart count? I ain't gonna be able to make any kind of payment on that wage - and those are the only jobs out there)
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 home ownership. 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.”
According to the local Charlotte Observer, some experts say the plan could become an industry model and is the most substantial, creative approach yet to addressing the foreclosure fallout from stubbornly high unemployment.
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