Ahhh yes, more stupidity from the banks. Let's really prolong our foreclosures!
Bank of America Considering a Nine-Month Mortgage Forbearance Plan for the Unemployed
Posted by Carole VanSickle on Wednesday, April 21st 2010
Bank of America is considering offering unemployed homeowners who cannot afford their mortgage payments a full nine months of forbearance while they search for a new job. If, during the nine months, the borrower is able to obtain employment, Bank of America pledges to structure a mortgage loan modification based on the borrower’s new income.
Borrowers who fail to find new employment within the forbearance period would be required to relinquish the home through a deed-in-lieu transaction, which could be slightly easier on their credit and could possibly help them become eligible for mortgage and lending assistance sooner in the future thanks to Fannie Mae’s new lending policies, that allow for a variety of contingencies and extenuating circumstances to be factored in should customers wish to apply for a new mortgage within just a few years of defaulting on their old one, pre-foreclosure events like deed-in-lieu being one of the eligible events for that program.
Additionally, once the property is relinquished to Bank of America, the borrower could receive 2,000 dollars or more toward their transition out of the old home and into another residence. Bank of America told DS News that “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.”
Presently, the bank’s forbearance program is nothing more than a proposal. It will have to be approved by regulators and probably tested before it goes into effect on a large scale.