Own to Rent?: A Proposal to Ease the Mortgage Crisis

Dean Baker has posted a piece in the The Economists Voice on a different approach to addressing the sub-prime mortgage crisis.  Baker proposes a “rent to own” program where certain homeowners at risk of foreclosure would shift from owners to renters.  In this program some sub-prime borrowers could stay in their homes, but lenders would assume ownership of the property.  The borrower-turned-renter would pay fair market rent to the mortgage holder.  Baker states the plan could help protect millions of homeowners facing the prospect of losing their home.  These homeowners could stay in their home so long as they could afford to pay the rent. Tamar Frankel, the securitization guru, mentioned a similar proposal to me recently.  I found it intriguing, and Baker’s piece is the first I have seen that outlines how such a proposal might work. 

About these ads

One Response to Own to Rent?: A Proposal to Ease the Mortgage Crisis

  1. Ralph Liu says:

    Renee,

    You may find SwapRent (SM) interesting as well. Please visit our site at http://www.SwapRent.com and provide further comments. Thanks.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

%d bloggers like this: