Pass Leaseback Law to Help Foreclosed Homeowners: Kenneth R. Harney
Saturday, August 15, 2009
The Neighborhood Preservation Act will help stabilize falling property values, and it won’t cost taxpayers a dime, which is why real estate columnist Ken Harney is endorsing the measure. The legislation, which already has cleared the House with bipartisan support, would allow homeowners the option of leasing their foreclosed homes from their lenders to avoid getting kicked out, thus keeping neighborhoods from accumulating too many empty houses on the block. Under the plan, consumers could sign up to five-year leases, with a possible option to buy back their houses.
The only drawback with the measure is that bank participation would be entirely voluntary. Harney notes that the Center for Economic and Policy Research has argued Congress should toughen the plan on behalf of consumers: “If Congress does want to give homeowners the option to stay in their homes as renters, it will be necessary to pass legislation that explicitly gives them this right.”
-Noel Brinkerhoff
Lease-Backs Turn Owners Into Tenants (by Kenneth R. Harney, Washington Post)
H.R.2529: Neighborhood Preservation Act (Library of Congress)
H.R.2529: Neighborhood Preservation Act (OpenCongress)
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