Reports are surfacing indicating that the administration is considering a rental option for troubled homeowners. Could homeowners rent their homes in lieu of eviction?
According to Reuters:
Officials have been frustrated as red tape and rising interest rates have slowed a housing rescue plan announced in February that was meant to refinance the mortgages of 5 million borrowers and lower monthly payments for 4 million more.
The article cites a prescient Dean Baker, an economist with the Center for Economic Policy Research, who has advocated for several years the chance for homeowners to become long-term renters if their mortgages become too daunting. The article notes that Baker has discussed the rental option with administration officials. Baker prognosticated the housing bubble and its consequences for low income families in a 2004 issue of Shelterforce.
More on the Homeowners Affordability and Stability plan here and as for the rental option, stay tuned.