Bank of America will begin testing a limited, foreclosure pilot program that will allow homeowners who are facing foreclosure to remain in their homes but as renters for up to three years. Under the “Mortgage to Lease” program, distressed homeowners would transfer their property titles to Bank of America, which in turn would forgive their outstanding mortgage debt, according to an article in the Chicago Tribune.
For now the pilot program will only be tested in three states hit hard by foreclosures: Arizona, Nevada and New York. Fewer than 1,000 customers will be invited to participate in the first phase, Bank of America said.
Read the Bank of America news release to learn more about the details of this pilot program.