subject: Bank Of America Loan Modification Program - Lease Back [print this page] Many homeowners in today's market are finding it difficult to stay in their homes with unemployment at all-time highs and the prices of everything rising. In this situation, some homeowners are finding relief by getting involved with loan modification programs from their lenders. For example, Bank of America has facilitated the loan modifications for their borrowers. One program in particular, makes it possible for homeowners to stay in their houses even if they are facing foreclosure.
Lease Back Program
With this type of loan modification program, the lender forecloses on the house and then sets up a lease that allows a homeowner to stay in their home on a rental basis. For example, you allow your home to be foreclosed upon by the lender and then you sign a one-year lease to live in your home. You pay the lender rent every month and you get to stay in your house. The rent is typically based on market rental rates in your area and you are no longer responsible for the mortgage.
Advantages
The big advantage of getting involved in this type of program is that it allows you to stay in your house, even if you are having trouble making your mortgage payment. If market rental rates are cheaper than what you pay for your mortgage payment each month, it could save you quite a bit of money every month. You also will not have to worry about a mortgage and over your head any longer. If you can't make your monthly payment, you can simply move out of the property. You may have to worry about some fees associated with breaking your lease, but they will not be nearly as bad as having to make late payments on your mortgage or worrying about foreclosure.
Getting Help
If you are having trouble with your mortgage, you may want to consider getting involved in a lease back loan modification program. If this sounds interesting to you, you may not like the idea of doing it by yourself. In this situation, you can hire a loan modification lawyer to assist you. An experienced and capable loan modification lawyer will be able to talk to the lender on your behalf and make sure that you are being treated fairly. The attorney can review the documents that are provided to you by the lender to make sure that they are fair and in your best interest.
Considerations
While using this approach can be advantageous, you need to consider the implications of doing so. Regardless of what type of modification you get involved with, your credit will probably suffer a bit, and it may be difficult to get approved for any kind of financing in the near future. As long as those issues are not that critical to you, getting a modification could be a worthwhile endeavor for you. Just make sure that you get the help you need from a qualified attorney before you start dealing with the mortgage lender to facilitate a new modification.
