An interesting bill was introduced before the Arizona State Legislature this week.
From azcentral.com … U.S. Rep. Raul Grijalva, D-Ariz., with help from the left-leaning Center for Economic and Policy Research, introduced a bill earlier this week that would allow homeowners who default on their mortgages to remain in their homes by renting them from the lender indefinitely.
The article goes on to explain that the bank could sell the home but the buyer would have to agree to let the previous owner remain as a tenant for as long as he/she wants.
An interesting solution to a problem many people are facing. And don’t get me wrong, a solution is needed for many Arizonians but I can’t help but think that a lot of people who don’t deserve to benefit from a program like this would take advantage of it. Wouldn’t a program like this encourage home owner’s who can afford to stay in their home but are just upset at the drop in the home’s value to default on the loan and rent the home back for as long as they want?
Theoretically, the home owner could take the hit on their credit rating from the foreclosure, rent the home back for 3 years after which time the foreclosure would no longer effect their credit score, and then buy another home. Heck, they wouldn’t even have the inconvenience of having to pack up and move.
I tried to find more information on the bill but haven’t had any luck so far. If anyone does find more on this please let me know.
{ 0 comments… add one now }