For Immediate Release

Contact: 

Alan Barber, (202) 293-5380 x 115

CEPR

Congress Takes First Step Towards Allowing Foreclosed Homeowners to Stay as Renters

WASHINGTON - In a voice vote, the House today approved the Neighborhood
Preservation Act (HR 2529) which would explicitly authorize
institutions insured by the FDIC to allow foreclosed homeowners to
remain in their homes as renters on long term leases. This measure
would remove any legal issues that could be raised if a bank were to
voluntarily enter a rental agreement with a foreclosed homeowner.

While this measure may allow some number of homeowners to stay in their
homes as renters, it is unlikely to benefit the vast majority of
homeowners who are facing foreclosure, since the decision to allow
homeowners to become long-term renters will be left with the bank. If
Congress does want to give foreclosed homeowners the option to stay in
their homes as renters, it will be necessary to pass legislation that
explicitly gives them this right.

Given the limited impact to date of the various mortgage modification
programs that have been put in place, a Right to Rent law seems the
only plausible route toward providing homeowners with security in their
house.

###

This is the world we live in. This is the world we cover.

Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Simply Won't Exist.

Share This Article

More in: