BofA Allows Some Homeowners to Rent, Avoid Foreclosure
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Bank of America Corp., the second-largest U.S. bank, started a program this week to allow mortgage borrowers facing foreclosure to stay in their homes as renters while transferring title back to the lender.
The pilot program, dubbed “Mortgage to Lease,” will begin with fewer than 1,000 borrowers in Arizona, Nevada and New York, the bank said today in a statement. Homeowners will transfer title to the bank and have their mortgage debt forgiven, the lender said. They’ll then be able to lease the home from the bank for as many as three years, at or below market rates.