Bank of America foreclosures department wants to offer nine months of ‘no payment’
Unemployed homeowners who have their mortgages with Bank of America — the largest bank-holding company in the United States — might not have to pay their mortgages for up to nine months, according to the Charlotte Observer. However, there is a catch. If after nine months the homeowners are either still unemployed or unable to meet their [...]

Unemployed homeowners who have their mortgages with Bank of America — the largest bank-holding company in the United States — might not have to pay their mortgages for up to nine months, according to the Charlotte Observer.

However, there is a catch.

If after nine months the homeowners are either still unemployed or unable to meet their mortgage obligations, Bank of America would take possession of the homes (essentially foreclosing on them) and provide the ousted residents with $2,000 to put toward relocation assistance.

The proposal still needs regulatory approval, but it’s already being hailed as the “banking industry’s broadest effort to ease foreclosure pain for the jobless.”

Mark Pearce, N.C. deputy banking commissioner, tends to agree:

“This seems like a new idea that offers a lot of positives for both the homeowners and the bank. There’s a nice balance, giving people more breathing space but with a date certain for moving to the next step if things don’t work out.”

Details such as eligibility and the application process, as well as if the money needs to be eventually paid back over time, are still under consideration.

Nonetheless, it’s a forward-thinking program that could help owners get back on their feet and, if nothing else, help them save up some cash for the next phase in their lives … whatever that may be.

Stay tuned.