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Bank of America has agreed to suspend foreclosure notices on 2,000 Phoenix-area homes.

It's part of an agreement reached between the Arizona Attorney General's Office and the banking giant.

Last month, B of A agreed to modify loans for struggling borrowers if attorneys general from Arizona, Texas, Ohio, Iowa and Washington halted legal action against Countrywide, a subsidiary recently acquired by B of A and the nation's largest subprime lender. The legal action was based on the lender's alleged use of deceptive practices in its mortgage-lending business.

The deal requires B of A to place a temporary hold on foreclosures on loans made up until the end of 2007. The bank must also work with buyers to make their mortgage payments more affordable so they have the option of staying in their homes.

Rick Simon, spokesman for B of A, said the bank expects the home-retention program to be ready in December.

In Arizona, an estimated 13,000 mortgage holders are eligible for loan modifications under the agreement.