A new program being tested by Bank of America Home Loans on a limited number of delinquent mortgages would enable borrowers to hand over the titles to their properties but stay on as renters. The program could be expanded if it proves successful. The pilot program was launched this week in targeted hard-hit housing markets. BofA’s program could be embraced by some borrowers who prefer to maintain local social networks and avoid the public perception that they have been through a foreclosure since there will be no obvious signs that ownership of their properties have changed hands.
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