Californians, are you ready for Mortgage to Lease?

     Californians, are you ready?  As of May 25, 2012, Bank of America decided to expand its pilot program testing of Mortgage-to-Lease into California.  Initially extended to 1,000 households within Nevada, New York, and Arizona, Bank of America appears to be looking to increase its sample size of testing data points by inviting solicited California residents who meet the pre-screening criteria.  Including those originally solicited, the total is now estimated to be 2,500.  Bank of America is hoping such expansion will generate enough conclusive evidence of the effectiveness of the Mortgage-to-Lease program to warrant its full-fledged implementation across the country.  Until then, however, this pilot program will be conducted strictly on a solicitation basis in these four states, so hold tight on your application inquiries. 

     All of us at Equitable Realty & Services eagerly await the Mortgage-to-Lease pilot study findings, because said program could truly be the shot in the arm the real estate market needed to get back on track.  Bank of America Executive Ron Sturzenegger likewise optimistically remarks that if this program is welcomed by the public as a new alternative to foreclosure, Bank of America anticipates Mortgage to Lease “to stabilize housing prices in the surrounding community and curtail neighborhood blight by keeping a portion of distressed properties off the market. “

-As a side note, a trusted source has alluded to Equitable Realty & Services that this program may come to California with an option to buy. Yes, rent now and regain ownership later... Stay tuned....