Can’t pay your mortgage anymore? The government might start paying it for you. They have about $50 billion to do it with. I think that would cover the balance of my note. You would have to surrender ownership of your home though.
Don’t have a job? The government might start paying your rent. Of course you’ll still get your regular unemployment benefits as well.
Unfortunately there are a lot of very interesting questions which have gone unanswered here. Most importantly, would this apply only to Fannie and Freddie loans? Would it extend to TARP banks? Or would all banks have to accept these funds. I also wonder, wouldn’t this infringe upon a banks right to sell a foreclosed property? I am sure that many wouldn’t mind getting a government backed tenant, but banks aren’t in business to be landlords. Imagine a bank having to set up a property management department simply because the government forbids them from selling their assets, forcing them to rent to the defaulted party.
July 16th, 2009 at
[...] report for air quality … FORT WORTH REAL ESTATE BLOG – Austin has got the government’s number, whether it’s government backed renters, new rules about residential energy retrofitting, or new Fort Worth pet licencing regulations [...]