BUSINESS
03/22/2012 09:13 pm ET

BofA Tests An Option to Foreclosure

Bank of America Corp. BAC -2.24% is launching a pilot program that will allow homeowners at risk of foreclosure 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.

While the initial scope of the "Mortgage to Lease" program is small—the bank began sending letters Thursday offering leases to 1,000 homeowners in Arizona, Nevada and New York—it represents a big change in the way banks deal with borrowers who can't afford their mortgages.

Read more on Wall Street Journal

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