Tuesday, April 20, 2010

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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.

Customers who enter the program must be willing to relinquish the home
through a deed-in-lieu arrangement if they haven't found new employment
during the nine-month timeframe, and would be given a minimum of $2,000 to
help with the transition.

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 homeownership.
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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