Follow Up To BofA Borrowers in Foreclosure May Get Rent-Back Option
I received quite a few emails and comments regarding the BofA Rent-Back option blog I posted this morning. Overall, the comments seemed to convey that they were impressed that Bank of America was doing something rather than just kicking folks out of their house.
Several people asked me what REALTORS thought of the idea. I certainly cannot answer for other people, but I will try to give you my overall view.
First of all, let me preface it by saying that the housing bubble was a disaster that was caused by many, many things going wrong. It would be misguided to imply that the banks were at fault, or the buyers bought too expensive of homes, or the cheap credit is to blame. Believe me when I say there is enough blame to go around. If I had to sum it up I would I would say that it was caused in large part by greed on many different levels and a belief that there was no end to the boom.
But we are past that point of finding fault, at least in this blog, and we need to focus on what will get the housing market back to a more robust level.
It is important to note that the Rent-Back option is a pilot program and may not go anywhere, but I surmise that it will be successful, at least in the short term. The program is only scheduled to be for three years. If it gives time for the owners/tenants to be able to make a smooth transition to a new home, or to eventually buy back the home, it may be a good move.
There are very few details that have come out about the program and there are many, many unanswered questions. Such as; BofA said they would be renting the property back at or below market value. I don’t know what the value they will be using will be, will it be the market value of selling the home now, or the “value” of the mortgage they hold on their books. Market value to me is what the home will sell for in this market. What spin BofA has placed on the definition is any body’s guess.
As a professional real estate agent, I have to believe that the program is worth looking into, and may help to stabilize some of the hardest hit areas.
On the other hand, corporate greed is much to blame for the real estate mess, and I am concerned that BofA has ulterior motives that are not in the best interest of the soon-to-be-tenants. Again, without knowing the details of the plan, it will be difficult to properly asses the program.
I also received questions regarding how landlords view the “competition”. I would be very interested to hear from readers regarding the landlord perspective.
In any event, I think this will help to stabilize many of the hardest hit markets and help with the continuation of the real estate rebound.
Remember, real estate is a very local matter. If you are thinking of buying or selling, I urge you to talk to a real estate professional who can give you the facts you need to make an informed decision.
As always, if I can help you with any of your real estate needs, or simply to answer any questions you may have, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.