Another Plan To Fix The Housing Market: Rent-To-Own

Sorry banks, but the prices won't improve until you sell the houses that you have in foreclosure. Real Estate is valued by how much properties with comparable characteristics sold for in the last six months. If you keep holding on and waiting for prices to come back up, you won't find any buyers and more foreclosures will happen, thus the prices stay/go down. Sometimes you just have to bite the bullet and take a loss.

OK, this means BANKS will now owns HOMES. GOVT owns the BANKS. Using the transitive property, GOVT owns HOMES. MORE BIG GOVT!!

Sickening.... What we needed back in Oct was not intervene for quicker rebound. But Hussein and Tax Cheat Timmy are pursuing the FAILED Japanese model of extending it to good ol Chinese Water Torture. BTW - since the banks are getting nationalized it's really government becoming the largest slum lord!

Sickening.... What we needed back in Oct was not intervene for quicker rebound. But Hussein and Tax Cheat Timmy are pursuing the FAILED Japanese model of extending it to good ol Chinese Water Torture. BTW - since the banks are getting nationalized it's really government becoming the largest slum lord!

Yea lets get a forclosure/rent Czar!

What is going to make house prices go back up? Unrestricted immigration? Rampant inflation?

great idea,

This is just brilliant, Dan Alpert! So when home values continue declining as a result of increasing unemployment, the banks will have to write off MORE losses (which, we, the working taxpayers will have to cover because we've now become Bailout Nation) when the "leasees" dicide to buy their home back at a much-reduced price. Brilliant!

Sure, this will drive down itemized deductions and those will pay more taxes! Brilliant for the govt... not on my watch!!!!

Mansions now on SECTION 8?? Rentals are MORE than mortgages in most cases (to offset costs of repairs)... this premium is what you pay when YOU can't get a loan on your own. How is this a win for anyone?

We need jobs, bottom line. That's the foundation for any economic recovery.

This is probably the best plan available for a very bad looking future. With foreclosures reaching epic levels in every segment of mortgages, there are a lot of people that need an option that will keep them in their homes. The banks can continue to limp along holding the actual property instead of a mortgage. People here don't seem to understand what a mortgage is. Here is a clue, the bank holds your deed until you pay off the mortgage. A mortgage is ultimately a financial myth, wherein you believe you own a property and the bank allows you to hold this delusion while holding the actual deed. All the rent to own theory does is relieve you of the myth, while letting the bank continue to get some return for its investment, and more specifically avoid the very high cost of foreclosure or in other words the cost of dispelling your delusion. Bottom line, if it works to keep people in their homes and keeps large numbers of homes off the market as defaults being sold by banks, then it is a very good thing.

If a homeowner cannot afford a mortgage payment, they may not be able to afford to pay rent if unemployeed or underemployeed. It may work if the rent payment was much lower than the mortgage payment.

This may starve off forclosures, but it still makes the mortgage a bad investment with only 1% annual income and a resale value of 1/3 the face value. House prices are going to decline for many years until they are the traditional 2.5 times the family annual income. With fewer and fewer jobs this means 2.5 times one person's income.

Watch Obama...slowly your rights are being taken away. Business made America ...Gov't owning business did not. Does Russia sound familiar. Foreclose and have someone Pay what the home is actually work most likely 60% whats its worth.

This is ridiculous. You (the bank) can SELL a home to a more qualified "renter" and create a lease to own contract of course, the banks won't do this so....can you say TRUST DEEDS? Investors with cash will buy lower priced homes, come in throw out the irresponsible former Mortgagees and revive the old Trust Deed market again with 'tenants" that want to own the home over time! This gangster government has to be stopped.

Why rent to own an old, grossly overpriced house when you can buy/build a new one for half the money? The central planners' fatuous schemes to prop up the markets grow more ludicrous every day. The lies and the pumping cannot work because the bankers' credibility is gone and there is no longer a sucker market deep enough to absorb their massive need to dump toxic financial assets. Unfortunately, pump and dump is all they appear to know.

what a bright idea. it would accomplish exactly the opposite -- once the banks are forced to recognize the losses, the stampede for the doors is unavoidable. I like it !!!

Wow, what a lousy creative solution their pitching.....makes you wonder what are drinking when they come up with these ideas!

If you can't make the loan payment how are you going to make the rent payment? Mr. Franks was thinking the government should cover the rent for the troubled assist. Why not live rent free for the next five years will be the next bank ad.