Rent-to-Own

Finally, one of the country’s largest banks is going to employ a tried marketing strategy on the homes it has foreclosed.

Under certain conditions, the Bank of America will lease the homes it owns back to their original owners. As noted in my previous blog, besides saving a bundle in maintenance on the foreclosed homes*, I think it is possible that the Bank will be able to unload those homes sooner at a better price. We all know a neighborhood full of residents is definitely more attractive than a desert one. And an occupied home is more inviting than a boarded-up one.

In the past when the market was glutted with unsold homes, developers would offer a rent-to-own packages to unload their excess inventory.

Let’s hope other banks will join BOA on this soon. - Ayee

*See "To Rent or Not to Rent," Thought of the Day, AC, July 26, 2011