Underwater mortgages, foreclosures and homeowners frantically scrambling to save their homes is a common occurrence for at least one family per neighborhood. It seems as though no one is exempt from the economic struggles that have plagued the housing and job market for the last few years. However, now that foreclosure rates have hit an epidemic high, some lenders are stepping in to intervene and offer relief for many struggling homeowners.
Big Banks Step In
One of the largest mortgage lenders is rolling out a pilot program designed to help homeowners stay out of foreclosure. Bank of America has begun a new program that will offer homeowners up to $20,000 for short selling their homes instead of letting them fall into foreclosure. The program is designed not only to help homeowners get out from under a sinking mortgage with dignity, but will also reduce the likelihood that the home is destroyed after the homeowner vacates, a common occurrence in foreclosed homes. Both the homeowner and the lender stand to benefit.
In order to qualify the homeowners must secure a buyer for the home before November 30th and must close on the home before August 31st of 2012. Home to the largest foreclosure market, Florida residents are the only ones eligible to benefit from the Bank of America pilot program right now. Once the program’s effectiveness is evaluated, the program may be extended to additional states.