NEW YORK, July 14 (Reuters) - 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, sources familiar with the administration's thinking said on Tuesday.
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).
http://www.reuters.com/article/marketsNews/idUSN1429265720090714?rpc=77
Can you imagine, losing your home in foreclosure, then being granted the "privilege" of renting your home from the bank? But you can only rent "for several years," after which time I assume one would have to hit the streets for good.
And that other nugget of awesomeness.. mortgage subsidies for the unemployed! And extended unemployment comp too!
Wow, this CLEARLY can't end well.
To be clear, I'm not knocking whatever assistance the unemployed are lucky to get. I'm just thinking of the bigger picture.. sending out checks and paying people's mortgages, when we're headed for 30% unemployment, is simply not sustainable.
Or, am I wrong? Can we actually afford such a massive welfare state?
And the renting the homes back to the foreclosed owners is really the wrong way to go.. why not a program to just renegotiate the adjustable rates for Pete's sake???? But no, we can't have that now can we -- far better for the bank to just own your house and have you renting it, things like equity is the province of the banksters now.
