A new program from one of the nation’s largest banks allows homeowners facing foreclosure to keep their homes.
Bank of America announced its “mortgage to lease” program, which will begin as a pilot program for up to 1,000 homeowners in Arizona, Nevada and New York, according to CNN. The homeowners turn the title over to the bank, their debts are forgiven and they are allowed to lease the home for up to three years.
Homeowners that are selected for the pilot program are 60 days delinquent on their mortgage, have a high loan balance and have income high enough to pay the rent.
"Our priority is designing a solution that helps our customer," Ron Sturzenegger, an executive with the bank, told CNN in a statement. "If this evolves from a pilot into a more broadly based program, we also see potential benefits from helping to stabilize housing prices in the surrounding community and curtail neighborhood blight by keeping a portion of distressed properties off the market."