One plan making the rounds in D.C. is Right to Rent: a program, first floated some two years ago by liberal think-tanker Dean Baker that would allow folks who have lost their home to foreclosure to continue living in the home as a renter.
As Baker sees it, giving the person facing foreclosure the right to rent their home at a market rate for a long stretch, i.e. five to 10 years is a win-win. This way the landlord, i.e. investor or bank gets market rental income, the homeowner isn’t uprooted, property values aren’t further depressed by foreclosure fire sales, and taxpayers aren’t asked to bail out lender or borrower.
In mid-July a Treasury official confirmed the administration is mulling the idea. The House has supplied traction too, recently passing the Neighborhood Preservation Act, which would permit FDIC-insured banks to lease back homes to folks it has foreclosed on. Did you catch that artful spin? This isn’t solely about helping the foreclosed; it’s about protecting your neighboring home’s value.
Read a detailed article at CNN Money
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