Originally posted on my private blog May 20th, 2009.
I keep hearing about the frustration caused among responsible borrowers by any potential bailout of mortgage owners who bought homes they knew they couldn't afford and have an idea: turn them into renters. Any payments they've already contributed could be converted to a credit towards their rent (including the time they've already lived there, of course), giving them a respite from high payments and also tying them to the property so it won't stand vacant. As abandoned properties quickly deteriorate through a lack of maintenance, theft, and vandalism it would make sense for a minimum stay be allowed even in cases where the math would indicate zero rent credit. This is essentially a time buying suggestion, allowing hopefully for the current occupants to make other arrangements, the owners to find new buyers (or tenants), and for the housing market to recover somewhat. Since renting is probably what these buyers should've done instead of purchasing a home they never could've afforded, it seems like a pretty fair system all around and all the participants would share the losses.
I keep hearing about the frustration caused among responsible borrowers by any potential bailout of mortgage owners who bought homes they knew they couldn't afford and have an idea: turn them into renters. Any payments they've already contributed could be converted to a credit towards their rent (including the time they've already lived there, of course), giving them a respite from high payments and also tying them to the property so it won't stand vacant. As abandoned properties quickly deteriorate through a lack of maintenance, theft, and vandalism it would make sense for a minimum stay be allowed even in cases where the math would indicate zero rent credit. This is essentially a time buying suggestion, allowing hopefully for the current occupants to make other arrangements, the owners to find new buyers (or tenants), and for the housing market to recover somewhat. Since renting is probably what these buyers should've done instead of purchasing a home they never could've afforded, it seems like a pretty fair system all around and all the participants would share the losses.
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