Obama Considers Rental Option to Aid Defaulting Homeowners

July 15, 2009

(ChattahBox)—With home foreclosures increasing at an alarming pace, government officials are considering new methods to offer some relief to homeowners facing evictions from their homes.

One plan being given serious consideration by administration officials, involves offering homeowners behind in mortgage payments, the option to stay in their homes by renting.

The plan would require delinquent homeowners to turn over ownership of their homes to the bank, while being allowed to remain in the property for at least several years.

The delinquent borrowers would pay an affordable monthly rental payment to the bank. This way, families would not have to be subjected to the disruption and homelessness when their homes enter foreclosure.

Another plan in the works is a form of a cash stipend paid to unemployed homeowners to assist them in keeping their mortgage payments up to date.

The mortgage assistance would be awarded to a homeowner together with unemployment compensation.

The government has a housing aid reserve of $50 billion that would be used to fund the new programs under consideration.

Source


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One Response to “Obama Considers Rental Option to Aid Defaulting Homeowners”

  1. Repayment Mortgage - Obama Considers Rental Option to Aid Defaulting Homeowners - Chattahbox.com « Repayment Mortgage on July 15th, 2009 7:24 pm

    […] Obama Considers Rental Option to Aid Defaulting Homeowners – Chattahbox.com(ChattahBox)—With home foreclosures increasing at an alarming pace, government officials are considering new methods to offer some relief to homeowners facing evictions from their homes. One plan being given serious consideration by administration […]

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