July 15. 2009

President Barack Obama

It was announced yesterday, President Barack Obama is, "Mulling a rental option for some homeowners." Last month, I wrote about the rental issues besetting homeowners across America, whose properties are in foreclosure or pre-foreclosure stages, in the June 15, 2009 article The State Of The U.S. Housing Market.

I wrote of my neighbors, who were barred from renting their home, whilst moving to cheaper accommodations in a neighboring county to save money. It was an unwise move on the part of the bank, as the house has been empty for over six months, when my neighbors had found someone who wanted to rent it at a good price back then.

Several thousand dollars in rental income could have been generated by now, which would have put their mortgage back on track. However, in light of the bank's decision, they had no choice but to abandon the house, which was very sad.

The house still has not been auctioned yet. Not to mention, many courthouse held auctions of homes in America are coming up empty, with properties going back to the banks, many times without a single bid on them. 

This story is repeating itself across the country. Some people would move in with relatives and rent out their homes to save their properties, but the banks will not let them (rentals).

Once again, some major banks are not working with homeowners and they are losing money for it. It is as though some of these prideful banks would rather see the homes empty, than work with homeowners, which is bad business, as it drives down property values and creates deserted neighborhoods.

The banks also have to pay maintenance fees and taxes on said empty properties, incurring additional costs. It's just bad business all around.

There are some bad lawyers out there taking advantage of the foreclosure crisis, but there are some who are successfully fighting the banks via the court system, then obtaining a loan modification for their clients, keeping them in their homes with comfortable interest rates.

The key is to find a good lawyer and one that won't drag out your foreclosure case, leaving you to catch up on a year or more of payments, plus fees and penalties you will incur from the banks. Get your loan straightened out as soon as possible.

RELATED ARTICLES

The State Of The U.S. Housing Market

Obama And Homeowners

Obama mulls rental option for some homeowners-sources

Tue Jul 14, 2009 3:07pm EDT - NEW YORK, July 14 (Reuters) - 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, sources familiar with the administration's thinking said on Tuesday.

Under one idea being discussed, delinquent homeowners would surrender ownership of their homes but would continue to live in the property for several years, the sources told Reuters.

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.

As part of this plan, jobless borrowers might receive a housing stipend along with regular unemployment benefits, the sources said. (Reporting by Patrick Rucker; Editing by Diane Craft)

http://www.reuters.com