From Matthew Ferrara & Company's Blog today:

 

If you’re looking for how the housing market double-dip will be created, here’s the answer. Never mind the endless taxpayer-backed money-pits of FHA, Fannie and Freddie: Here comes a proposal to grant defaulting homeowners the “right” to rent their homes for five years.

 

It’s called H.R. 5028 and it’s no joke. The “Right to Rent” bill drafted before Congress meets with the approval of the Center of Economic Policy and Research, a think-tank that believes home “ownership may not be the smartest option.” Not that such thinking in Washington should come as news to our readers, since we’ve reported that none other than FHA’s Director Donovan has made similar statements in recent months.

But now we’re talking potential legislation.

According to HousingWire, the bill would grant the right to homeowners entering foreclosure to occupy their homes for up to five years, making fair-market rent payments, determined by an independent appraiser, to the lender. The CEPR says this would give homeowners important “security” since they would not be “thrown out on the streets.” CEPR cites the cost savings to “homeowners” who would be able to rent their homes rather than face evictions and have to rent on the open market.

REALTORS should be horrified.

Read the rest of this blog entry at our site... 

 

 
Post is included in group: Blatant Politics
Post is included in group: 'JACKED!!!!!
Post is included in group: Politics And Real Estate
Post is included in group: REALTOR LIFE
Post is included in group: Realtors®

10 Comments on Proposed Bill in Congress Could Crush Housing Industry

SEP
24
2010
143,179 Points 1 Featured Post Attended Rain Camp

Now I've heard it all. I can sympathize with people losing their homes but I think this bills goes too far. Are there no other rentals available? These days it seems that solutions to problems go from one extreme to another. Then again the country has become so polarized that this fits right into these times. What will they think of next?
5:30pm • #1
10 Featured Posts Outside Blog Attended Rain Camp

@Victor: If they're going to nationalize housing, maybe they can just be honest about it? ......

5:46pm • #2
882,832 Points 50 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp

Is 5 short years long enough for people to make an alternate plan?  I mean, we don't want people ejected onto the streets, right?
11:08pm • #3
SEP
25
2010
563,876 Points 17 Featured Posts Outside Blog Called Shot Master

Matthew - while this would be one of the final nails in the coffin for the housing market, it appears to be DOA. It has languished in committee for over 5 months and similar bills are dead. It certainly will not come to the floor before the house breaks for elections and, after what looks like Nov. will bring, will probably never see the light of day.
9:52am • #4
368,108 Points 18 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

The ideas that float through our legislatures these days make no sense whatsoever. Without any leadership at all the bills that get put up for a vote are an amalgamation of various ideas and no clear thought. This is yet one more. Thanks for bringing it to our attention.
12:22pm • #5
981,470 Points 114 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Oh sure . . . they'll [and by 'they'll . . . "they" referring to the mortgage holders] ride out the 5 years, when values come back?!?   The homeowners who whose mortgages were manipulated get to rent -- their own homes!!  The mortgages are then paid by the rents collected.  GEEZ! 
4:00pm • #6
385,047 Points 8 Featured Posts Called Shot Master

The bill looks dead as has been indicated by Mike Saunders.  Even if it passed, what is the likelihood that a homeowner who can't make mortgage payments will not default on rent payments?  Even if this poorly conceived bill became law, it would benefit nobody.
4:07pm • #7
SEP
26
2010
277,736 Points 2 Featured Posts Outside Blog Attended Rain Camp

Everyday, the next revolution gets a little bit closer.

Ween them off private enterprise, a free market system, private property, who needs all that nonsense?! The government will take care of you!

Don't forget to vote for your landlord!

My friends...The lunatics have taken over the asylum.
8:56pm • #8
SEP
27
2010
157,610 Points 1 Featured Post Outside Blog Called Shot Master

Matthew, this constitutes another form of usury in my opinion.  If i was a homeowner in that position I am not sure if I would accept.  Think of it this way.  If i have no more title to the property and pay rent for the property, (1) it means the banks themselves don't see the value in the property and don't believe that it will sell, it also means that (2) the banking systems are becoming landlords not just mortgagers, which reminds me of the land-title systems before land-title systems, in the old world, where should you become late with payments you were kicked off the land and all your interests in that land were abolished.  I think these bills would enter a dark period in our real estate history...
11:30pm • #9
SEP
26
2011
222,246 Points Outside Blog Hit Router

Duly Horrified.  More government do gooders can we shout any louder "Nanny State"
5:19pm • #10


What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 
Mf_harcourts2 Rainmaker_large

Matthew Ferrara -- Matthew Ferrara & Company

Boston, MA

More about me…

-- www.matthewferrara.com

Address: 45 Osgood Street, Methuen, MA, 01844

Office Phone: (800) 253-2350

Cell Phone: (800) 253-2350

Email Me





<!-- SpringWidgets | Matthew Ferrara & Company (#67581) | HTML | Generated on 11/14/2008 -->


Listings

Links

Archives

RSS 2.0 Feed for this blog

Find MA real estate agents and Boston real estate on ActiveRain.