BOA Pilot Program Converts Deed to Lease

Charlotte, NC, March 23, 2012 -- Bank of America Corp. is beginning a small pilot program that would convert distressed properties into rental units, turning the homeowners into tenants.

Homeowners at risk of foreclosure would be allowed to hand over deeds to their houses and sign leases that will let them rent the houses back from the bank at a market rate.

Bank of America has begun sending letters offering leases to 1,000 homeowners in Arizona, Nevada and New York.

Banks have focused their efforts on modifying mortgages, usually by reducing the monthly payments. Beyond that, most foreclosure alternatives require homeowners to leave their house.