Bank of America announced March 22 that it has launched a pilot program in three states to allow homeowners facing foreclosure to stay in their homes as renters.
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Under the Mortgage to Lease program, fewer than 1,000 Bank of America customers in Arizona, Nevada and New York will be allowed to transfer their deeds to the bank and have their loans forgiven. In return, they can lease their homes for up to three years at or below the current market rate, according to Bank of America.
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BofA plans to eventually turn the properties over to investors and may expand the program if it works. The Wall Street Journal reports that investors already have approached BofA about buying the leased properties. The question is how many homeowners will go for this plan.
What do you think of this pilot program? Is it a great way to keep people in their homes? Would you welcome the chance to avoid foreclosure, or find it difficult handing over your deed then paying rent to the bank? Share your thoughts in the reader comments box below or on our Facebook page.
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