Bank Of America is beginning a pilot program aimed at turning homeowners delinquent on their mortgage into renters of the property. Being tested in three states, Arizona, Nevada and New York, fewer then 1,000 B.O.A. customers will be offered a chance to transfer their home’s title to the bank in exchange for the right to lease their home for up to three years.

B. O. A. will forgive outstanding mortgage debt and the monthly lease payment will be at or below the rental market rate. Customers will also not have to pay property taxes or homeowners insurance.  To qualify for the program, homeowners must be at least 60 days behind on payments and must owe more on their home mortgage then the home is worth.

Bank Of America’s program comes as foreclosures have started increasing again, after several major banks, including B.O.A. suspended legal actions to take back properties during much of 2011. Foreclosures were halted after several courts discovered fraudulent paperwork and robo-signatures from bank representatives being used in legal documents.

B. O. A. may expand the pilot program to other states including Florida if the test proves to successful.