July 15, 2009
The Obama administration is tinkering with the idea of becoming the landlord in situations where mortgage borrowers have fallen behind on their payments, and then pay the government rent in the process.
According to Reuters in Obama mulls rental option for some homeowners-sources, “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,” Reuters continues, “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.”
Yikes! So, in addition to making GM cars the US Government will also be the country’s largest landlord?
Why not let the market absorb the losses, instead of creating a band-aid solution that will just cost the tax-payer more money, and further lengthen The Great Recession.
The BuzzBuzzHome Team