WASHINGTON (AP) -- Bank of America has launched a pilot program that will allow some homeowners at risk of foreclosure to become renters and stay in their homes.
Fewer than 1,000 borrowers in Arizona, Nevada and New York will be enrolled in the test program, which began this week. Those selected will transfer the title of their homes back to Bank of America and have their mortgage debt forgiven.
The homeowners can rent the homes for up to three years at or below their area's market rental rate.
Bank of America says it's targeting homeowners who are at "considerable risk" of foreclosure; have high loan balances relative to their home's value; have exhausted all loan modification programs; and have been delinquent on their mortgage payments for more than 60 days.