Any thoughts on what this would do to home prices?
Started by e76
almost 17 years ago
Posts: 226
Member since: May 2009
Discussion about
http://www.reuters.com/article/marketsNews/idUSN1429265720090714?rpc=77 NEW YORK, July 14 (Reuters) - U.S. government officials are weighing a plan that would let borrowers who have fallen behind on their mortgage payments avoid eviction by renting their homes instead, sources familiar with the administration's thinking said on Tuesday. Under one idea being discussed, delinquent homeowners would... [more]
http://www.reuters.com/article/marketsNews/idUSN1429265720090714?rpc=77 NEW YORK, July 14 (Reuters) - U.S. government officials are weighing a plan that would let borrowers who have fallen behind on their mortgage payments avoid eviction by renting their homes instead, sources familiar with the administration's thinking said on Tuesday. Under one idea being discussed, delinquent homeowners would surrender ownership of their homes but would continue to live in the property for several years, the sources told Reuters. Officials are also considering whether the government should make mortgage payments on behalf of borrowers who cannot keep up with their home loans, tapping an unused portion of a $50 billion housing aid kitty. As part of this plan, jobless borrowers might receive a housing stipend along with regular unemployment benefits, the sources said. (Reporting by Patrick Rucker; Editing by Diane Craft) [less]
It's insanity. How would you determine the rent? You'd need a whole new agency to administer it. And then when they fall behind in their rent payments? (because if they are anywhere near their mortgage payments, they wouldn't have gotten themselves there to begin with).