Looks like B of A is now sending out letters for Mortgage to Lease.
They will forgive the debt and the Seller gets to stay in the home at a reduced rent.
There are conditions of course, but it is out there.
For a Seller who does not want to sell and remain in the home it may be a good thing for them.
They reduce the rent the first year and can increase it up to 5% annually.
Have you seen letters going out in your states?
Yes, a client of mine got one in the preforclosure letter. They have an FHA loan, so maybe it has to be offered as an alternative now. They have a diiferent bank other than BOA too..
No potential law suit/liability since short sale was "subject to lender approval". They didn't "approve" the short sale.
Can you post a copy?