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Bank of America is testing a mortgage-to-lease program in four states. The idea: Instead of evicting homeowners who face foreclosure, it lets them stay as tenants and sells the homes to investors.
While it's cheaper to buy than to rent in most of America's big cities, access to mortgages is tough in the wake of tighter credit standards from banks.
A growing number of Americans can't afford a home or don't want to own one, a trend that's spawning a generation of renters and a rise in apartment construction.
Fannie Mae plans to allow homeowners facing foreclosure to stay in their homes and rent them for up to one year in a new program to help troubled borrowers.