Bank of America is testing a new program in New York and two other states that allows customers facing foreclosures to remain in their homes by renting the property from the bank, the New York Times reported. The program will initially be offered to about 1,000 customers in New York, Nevada and Arizona.
The bank would set the rent to be less than monthly mortgage payments and equal or less than market rates. BofA would hold on to the properties at first, but eventually sell them to investors.
A BofA spokesperson said the bank is confident investors would be interested in the properties, but is testing to see whether customers are happy with the plan. Customers can’t apply for the program, instead the bank will invite 1,000 customers to participate. [NYT]