Bank of America, Chicago Launch Partnership to Address Abandoned Homes

Chicago Mayor Richard M. Daley and Bank of America’s Illinois Market President Tim Maloney today announced that the bank is taking several actions in partnership with the city to alleviate the impact of vacant properties on surrounding neighborhoods and the community at large. The initiatives include the donation of the vacant foreclosed properties by Bank of America to the city and nonprofit organizations for reuse, redevelopment and neighborhood revitalization.

“Bank of America is committed to a comprehensive neighborhood stabilization approach to help support our customers and the communities we serve and live in,” said Maloney. “The programs we are announcing in Chicago today build on the initiatives we already have taken in homeownership retention, foreclosure prevention and neighborhood stabilization and revitalization.”

"In addition to helping support social efforts, Bank of America is working with the city to help protect residents and communities from the dangers posed by vacant properties,” said Mayor Richard M. Daley. "As we continue to face the worst recession in 70 years, addressing the foreclosure problem is essential. This vacant and abandoned building initiative is a perfect example of public-private partnerships that have moved Chicago forward."

Bank of America has been at the forefront in homeownership retention and foreclosure prevention initiatives in Chicago with the recent opening of a new full-time customer assistance center following a successful mortgage modification outreach event where more than 1,600 customers responded to invitations to meet with homeownership retention specialists. These initiatives provide convenient opportunities for customers who are having difficulty making their mortgage and other credit account payments to receive face-to-face counseling, on-site processing and underwriting of mortgage modification requests and other assistance.

Unfortunately, many homeowners faced with unemployment, underemployment and other economic hardships, have transitioned to alternative housing situations, and in many cases have walked away from their homes, leaving behind vacant and deteriorating properties that can cause neighborhood blight.

To address the growing issue of abandoned properties, Bank of America will engage in several measures in collaboration with the city of Chicago:

• Registering properties with the city when the mortgage is delinquent and the property has been identified as vacant and abandoned.
• Identifying up to 150 vacant and abandoned properties in default to be referred to the newly created Cook County vacant and abandoned building court call, intended to move confirmed vacant and abandoned properties through the foreclosure process more quickly and return them to stable, productive use.
• Contributing toward the costs of demolishing deteriorating buildings on these donated properties to relieve the financial burden of the city.
• Donating foreclosed and vacant condominium units to the nonprofit Community Investment Corporation for its Troubled Condos Initiative, a partnership with the city to upgrade, preserve and stabilize management of affordable rental housing.

The vacant and abandoned building foreclosure pilot program is at the heart of Bank of America's revitalization efforts in collaboration with the city. Bank of America will file foreclosure actions on eligible properties in the new Cook County vacant and abandoned building court call, created under the supervision of Chief Judge Timothy C. Evans. The city and Bank of America anticipate that this expedited foreclosure process will significantly reduce the foreclosure time frame from an average of 18 months for vacant and abandoned properties.

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 58 million consumer and small business relationships with approximately 5,800 retail banking offices and approximately 18,000 ATMs and award-winning online banking with 30 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

www.bankofamerica.com