They won't own their home, but they also won't owe any more money on the mortgage. Bank of America will serve as the landlord, turning the former owners into tenants.
Participants will be able to lease their home for up to three years at or below the rental market rate. The rent will be less than the participants' current mortgage payments and customers will not have to pay property taxes or homeowners insurance, the bank said.
Among requirements to qualify for the program, homeowners must have a BofA loan, be behind at least 60 days on payments and be "underwater," owing more on their mortgages than their homes are worth.
The small test is under way in Arizona, Nevada and New York. If successful, it could be expanded.
The Associated Press contributed to this report.