In the latest attempt to help prevent foreclosures, House Democrats recently introduced a bill that would give borrowers on the verge of foreclosure the right to rent their home from the bank even after the home is foreclosed. We get this from the recent Housing Wire story on the subject:
A bill filed in the US House of Representatives would allow mortgage borrowers to remain in their homes, as renters, for up to five years after receiving a foreclosure notice.
The “right to rent†bill, House Resolution (HR) 5028, would allow borrowers to petition a judge to stay in their homes as renters under a lease for up to five years. The judge would be empowered to appoint an independent appraiser to set fair market value, which would be allowed to rise with inflation, Representatives Raúl Grijalva (D-OH) and Marcy Kaptur (D-OH) said in a joint release. The bill is an updated version of a similar bill Grijalva introduced in 2008. …
The right to rent program would be limited to homes purchased at or below the median price for its metropolitan statistical area, and must have been the borrower’s principal residence for no less than 2 years. Only mortgages originated before July 1, 2007 will be eligible.
Of course the bill has a long way to go before becoming law but it is an interesting idea.