November 12, 2012

Is a Mortgage-to-Lease Right for Me if I live in Palm Beach County?

A mortgage-to-lease may be right for a home owner who is about to lose his or her home in Palm Beach County, Florida. There may be other options available, though.

The idea of losing your home may lead you to extreme stress and worry. But there may be other options such as a pilot program called mortgage-to-lease that is being offered to some Bank of America and Fannie Mae customers. You may also find a helping hand from an attorney at a Palm Beach County foreclosure law firm.

Overview of the Mortgage-to-Lease Program

Bank of America is one of the well-known banks discovered to be engaged in what is being called the ‘robo-signing scandal’. This involved banks signing off on foreclosures without properly analyzing them. As a result, some owners may have unnecessarily lost their homes. Perhaps as a way to make good on their mess, the mortgage-to-lease program was designed. It could potentially help thousands of owners save their homes.

The way it works is the owner will transfer the title of their home to the bank. In turn, their mortgage debt is erased. The owner then becomes a renter. They can rent their home for as long as 3 years. The rental market rate would be at or below the mortgage rate. Eventually, it may even allow the now-renter to buy back their house.

This could lift a huge financial burden, as the renter would be paying less each month than when they were paying their mortgage. In addition, they will not be responsible for homeowners insurance or property taxes.

To participate in this program, here are some of the requirements:

• earn enough income to pay the monthly rent;
• Bank of America must own the mortgage;
• must remain as occupants in the house;
• mortgage must be at least 60 days past due;
• there cannot be a second mortgage on the home;
• attempts have been made on other loan modifications; and
• house is at high risk of foreclosure.

The idea is that the program could eventually help stabilize housing prices in neighborhoods with several houses for sale due of foreclosure. When certain areas have a high rate of foreclosures, it makes selling a home any other way difficult.

Meanwhile, foreclosure activity in this nation has been ramping up. Some believe it is the result of pending foreclosure cases from 2011 now moving forward. And with Florida being one of the highest ranking states dealing with this issue, the idea of a mortgage-to-lease might sound like a great option for you.

The problem is that Florida is not one of the states in the pilot program. It is currently being offered to homeowners in New York, Nevada, and Arizona. However, if it is successful, it might eventually benefit home owners in Florida, including Miami-Dade County, Broward County and Palm Beach.

Of course, it is hard to say if a mortgage-to-lease would be right for you. There may be other options if you are facing a possible foreclosure on your home.

There may seem to be no way out when you are buried in debt, without a job, and at risk of losing your home. If you have not made your mortgage payments in 3 months, you may be facing foreclosure. However, a Palm Beach County foreclosure law firm may be able to help.

The best way to learn about your rights as a homeowner is to speak with an attorney at The Neustein Law Group, P.A. Our law firm serves not only residents of the Miami-Dade County, Broward County, and Palm Beach County, but residents in counties throughout Florida. We may be able to delay your foreclosure or even stop it. Before you give up, give us a chance to fight for you. Contact us today – 561-235-0700 (Boca Raton Office), 561-232-3788 (West Palm Beach Office), 305-531-2545 (Miami Beach Headquarters) or 888-400-ATTY (2889) (Toll Free).