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Old 07-21-2009, 08:25 AM
 
27,213 posts, read 46,724,071 times
Reputation: 15662

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TAMPA - Losing your home to foreclosure may no longer mean you have to leave.

Congress and the Obama administration are considering a controversial plan that would allow homeowners to rent their foreclosed home for at least five years. The proposal is setting the real estate community abuzz.
Plan would let homeowners rent their home after foreclosing


As a LL and investor I would never buy a home like that....most people are just angry that some one else owns "their" home now and they have to pay rent!
Can you imagine how much they would care to keep the home nice....


I would consider it if it was a short sale and the owner wants to stay and is trying to save some of his credit score and financial issues....these people want help...who cares after your home is taken from you...most people rather move to a less expensive rental or will not take care to say the least!
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Old 07-21-2009, 08:43 AM
 
Location: East Tennessee
3,928 posts, read 11,596,703 times
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Banks don't want the asset and it's much better if someone lives there to maintain the property. And tenants who can move on short notice are getting some awesome opportunities to live large for small dollars, especially in higher end homes!
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Old 07-21-2009, 12:03 PM
 
5,453 posts, read 9,296,782 times
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Yeah, but if the bank owns it, they can have a huge rent, which can go towards the bank to recover their costs.......so, if the rent is higher than what the mortgage used to be on that house, I don't see many people going for that option.......it sounds ideal for the people who cannot afford to move out right away, but if they are slapped with a huge rent....that won't fly.
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Old 07-21-2009, 12:59 PM
 
2,729 posts, read 5,200,367 times
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I personally don't see this working but it is a great way to pressure banks to modify loans or sale short for those who need to do that.
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Old 07-22-2009, 02:46 PM
 
Location: Sacramento, CA
5 posts, read 8,377 times
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And who finally is paying for this? Right, I think it might be the "dumb ole" U.S. taxpayer.
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Old 07-22-2009, 06:12 PM
 
27,213 posts, read 46,724,071 times
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Quote:
Originally Posted by P.K. Lecoq View Post
And who finally is paying for this? Right, I think it might be the "dumb ole" U.S. taxpayer.
Unfortunately you nailed it...we all have to pay for the ones who aren't paying a penny!
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Old 07-22-2009, 10:38 PM
 
1,500 posts, read 3,331,611 times
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i like the idea of trading future equity for lowered current mortgages. the homeowner gets to keep their house in partnership with the bank so they have incentive to maintain the property and to stay put; their mortgage is refigured at today's price so they can afford their payments and so they can breathe again, no longer being underwater on their mortgages; and then they give back to the bank half their equity on the upside when they later sell to make up for refiguring the mortgages today.

"i'll gladly pay you tuesday for a hamburger today."~~wimpy of popeye fame.
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Old 07-23-2009, 03:57 AM
 
27,213 posts, read 46,724,071 times
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Quote:
Originally Posted by housingcrashsurvivor View Post
i like the idea of trading future equity for lowered current mortgages. the homeowner gets to keep their house in partnership with the bank so they have incentive to maintain the property and to stay put; their mortgage is refigured at today's price so they can afford their payments and so they can breathe again, no longer being underwater on their mortgages; and then they give back to the bank half their equity on the upside when they later sell to make up for refiguring the mortgages today.

"i'll gladly pay you tuesday for a hamburger today."~~wimpy of popeye fame.
Isn't every HO that has a mortgage in a kind of partnership with the bank. The bank ownes more of the house than most HO...in a way they pay rent until they own it and btw in the end they are paying so much more than what the closing price was...Just do the math!
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Old 10-19-2009, 12:36 PM
 
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Default Renting after foreclosure

We completed our short sale last year and it was very stressful. Not knowing when the escrow would actually close made it difficult for us to make moving arrangements. Having a rental option until the home is sold would be good for all parties. Two weeks is sufficient once the house is sold. Unfortunately as I found out, the banks aren't interested in becoming property managers.
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Old 10-19-2009, 12:59 PM
 
27,213 posts, read 46,724,071 times
Reputation: 15662
Quote:
Originally Posted by Backontrack View Post
We completed our short sale last year and it was very stressful. Not knowing when the escrow would actually close made it difficult for us to make moving arrangements. Having a rental option until the home is sold would be good for all parties. Two weeks is sufficient once the house is sold. Unfortunately as I found out, the banks aren't interested in becoming property managers.
Our HOA ownes some bankowned homes since the HOA foreclosed before the bank did and are selling them but have to get agreement from the bank which they got in all cases since the banks rather see them them off their accounts...and the HOA is renting them out till they are sold...so a good deal for the HOA and the members
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