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Bank of America has started a new foreclosure/lease program where they will allow some delinquent home owners transfer title back to BofA (forgiving their mortgage) and in return,BofA will lease the home back to the owner at or below market rents for up to 3 years. In my opinion, this "Mortgage to Lease" pilot program will never work and is merely a way of trying to regain favor in the public eye.
Why do I think it will never work? The same reason why "Deeds in Lieu" are never a successful (and rarely sought after) alternative to foreclosure. The typical person who is behind on their mortgage isn't just delinquent on that debt. There are often second mortgages and liens (HOA, Contractor, etc.) that may be placed against the house as well.
If a bank takes title back without foreclosure, they assume all of the debts and liabilities that may be attached to the home. There not going to do that.
I applaud your effort BofA...but I will be extremely surprised if this becomes a viable solution (or one that has any kind of impact) to the foreclosure situation we are currently in.