Plans which were discussed a few years ago are now resurfacing again, discussing allowing foreclosed on homeowners to remain in their properties as renters to preserve neighborhood home values.

Designed as temporary measures, the length of the rental period would be determined by Congress if the proposed bill passes. Also, as a bonus, the plans do not involve new bureaucracy, just a modification (temporarily) of the existing rules, which would make a big difference to homeowners who are struggling. The plan also binds buyers of the foreclosed property to commit to allowing the former homeowner to remain as a tenant for the rest of a guaranteed period. Providing stability for the market and the homeowner.

Another positive effect of these plans, is that banks are not in the business to become homeowners or landlords and therefore they may decide they want to work more with homeowners to modify their existing loan rather than foreclose or choose to rent the home back to the owner.

Watch this space as the story develops!

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