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
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)
A better answer may be banks letting owners exchange equity into a lower payment as the Black Swan author writes today. http://www.ft.com/cms/s/0/4e02aeba-6fd8-11de-b835-00144feabdc0.html?nclick_check=1
ReplyDeleteInteresting article...thanks!
ReplyDeleteAt some point, people will realize that the government interfering with things is as bad as it comes.
The thing I find interesting is that in all of the books I've read and seminars I've attended about real estate investing - - the authors and speakers always stress the importance of not letting the homeowner stay in the house if they cannot afford to pay the mortgage. So, it does not make sense for the regular Joe to become a landlord to a person who can't make the mortgage payment, BUT it does make sense for Uncle Sam to do it? I am confused.
ReplyDeleteAnon, no it doesn't make any sense at all, but what of the government's plans do?
ReplyDelete