The housing crisis seems to be moving into a new phase, with the foreclosure avalanche shifting into the rental conversion bonanza. In a move that actually makes some logical and logistic sense, Bank of America will begin transitioning some of its underwater borrowers from foreclosure candidates into tenants, thus allowing them to stay in their homes. B of A will work with local property management companies in managing their new rental pool, but see this as as intermediate step before eventually selling these cash-flowing properties to investors. [CoStar]
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