BOA Trying Out In Lieu

Bank of America is testing a new program on 100,000 distressed home owners.  This new program is called deed in lieu of foreclosure.  This means a person hands back the keys and moves and the bank does not go after them for the loan.

This may seem crazy but when you think about what happens to home (too frequently) when they are foreclosed this is possibly a brilliant move by BOA.  If you can get people to voluntarily leave instead of forcing them out they are less likely to destroy the property.  This also costs less in legal fees for the bank.  To build even more good will BOA is offering between three and fifteen thousand dollars to help the struggling home owner relocate.

As far as the persons credit goes this is still a knock but not nearly what they would get if they were to go into foreclosure.  Lets hope this trend leads to less foreclosures and a healthier market for homeowners.