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Don Brownstein has an idea for solving the foreclosure crisis: Turn them all into rentals. He...

Don Brownstein has an idea for solving the foreclosure crisis: Turn them all into rentals. He says foreclosing imposes unnecessary costs on both homeowners and mortgage servicers, which we can avoid by just renting the house back rather than evicting. Can you picture Jamie Dimon as Mr. Furley?
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Comments (28)
  • Poor Texan
    , contributor
    Comments (3533) | Send Message
     
    Well, if the owners are ready to be renters and pay their rent. If you can't collect mortgage payments, can you collect rent? If not, eviction is just a different type of foreclosure.
    15 Jun 2011, 05:57 PM Reply Like
  • montanamark
    , contributor
    Comments (1435) | Send Message
     
    really? what happens to the billions of toxic paper? just magically disappears? what about the borrower defaults - wiped clean? what about the phony balance sheets? what about the fed balance sheet loaded with toxic crap?
    on yeah - people need jobs and income to pay rent. approx $77 billion a year in unpaid mortgage/free rent exists now.
    15 Jun 2011, 05:58 PM Reply Like
  • Ed's perspective
    , contributor
    Comments (262) | Send Message
     
    montana .....
    can you expand on the $77 billion number .....
    source / background to that.
    how did you arrive at 77 billion versus some other large number?

     

    not questioning ....
    just seeking info.

     

    thanx.
    15 Jun 2011, 06:02 PM Reply Like
  • montanamark
    , contributor
    Comments (1435) | Send Message
     
    I've seen several studies/estimates on the wealth effect on the economy from people who are living rent free in their homes and not paying mortgages. can;t immediately find the $70-75 billion est., but here is a similar story from zerohedge - squattershttp://zerohedge.com/article/...
    15 Jun 2011, 06:29 PM Reply Like
  • montanamark
    , contributor
    Comments (1435) | Send Message
     
    i know of a number of people who are living in million $+ homes and havent made a mortgage payment for more than a year w/o foreclosure. ever wonder why ipad sales and other retail are doing well? life goes easier when you dont have to pay rent or a mortgage
    15 Jun 2011, 06:31 PM Reply Like
  • montanamark
    , contributor
    Comments (1435) | Send Message
     
    ed - one other thing; studies of credit reveal that the majority of people if they have to make a choice, stay current on their credit cards over the mortgage. i will try and find the link for you

     

    heres another www.irvinehousingblog..../
    15 Jun 2011, 06:32 PM Reply Like
  • montanamark
    , contributor
    Comments (1435) | Send Message
     
    money.cnn.com/2011/06/...
    15 Jun 2011, 06:38 PM Reply Like
  • Joe Eifrid
    , contributor
    Comments (341) | Send Message
     
    Thanks for the links Mark. We miss you on Ihub if same MM.

     

    JoeStocks.com
    15 Jun 2011, 06:45 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    These people are disgusting. They got ARM loans when things were rosy, then used the equity build to leverage off of. Some of them bought more toys. Some of them tried to expand their business. Whatever.

     

    None of them were sold 'a toxic loan'. They could have gone fixed. But no, now they whine that their payment 'tripled' after the adjustable rate they signed... adjusted.

     

    Lowest notch on the totem pole.

     

    Meh.
    15 Jun 2011, 06:50 PM Reply Like
  • montanamark
    , contributor
    Comments (1435) | Send Message
     
    wow, what a nice blast from the past, joe - a gentleman and scholar.
    hope you are doing well.
    15 Jun 2011, 07:18 PM Reply Like
  • montanamark
    , contributor
    Comments (1435) | Send Message
     
    ed - its driving me nuts that i cant find that study that estimated the amt is 70-77 billion - i just read it in the last week or so.

     

    apparently bloomberg did a similar article (another 50 bil. figure)

     

    activerain.com/blogsvi...-
    15 Jun 2011, 07:23 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    So we just swiitch from forclosure to eviction I suppose?

     

    Mr Furley was mean and cranky, Dimon would almost certainly be more so.

     

    Mr Roper was a better landlord anyway.
    15 Jun 2011, 06:17 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    I'd slap me some Janet before Chrissy.
    15 Jun 2011, 06:22 PM Reply Like
  • JohnBinTN
    , contributor
    Comments (3881) | Send Message
     
    Who, in their right mind, wouldn't? ;)
    15 Jun 2011, 08:46 PM Reply Like
  • buyitcheap
    , contributor
    Comments (1895) | Send Message
     
    Why choose? Janet was truly underrated. :-)
    15 Jun 2011, 09:22 PM Reply Like
  • JohnBinTN
    , contributor
    Comments (3881) | Send Message
     
    Agree. It would have surely been easy enough to bed them both, at the same time.
    15 Jun 2011, 09:30 PM Reply Like
  • uwatt
    , contributor
    Comments (12) | Send Message
     
    Dumbest idea I've heard lately. Like now the lender wants to be responsible for smoke detector batteries and upkeep?
    15 Jun 2011, 06:29 PM Reply Like
  • apberusdisvet
    , contributor
    Comments (2905) | Send Message
     
    In America the banks will get bailed out with TARP II, or III, because they cannot rent out foreclosed homes. Why? Because they cannot prove title or even the ability to foreclose. The MERS fraud with its legion of robot signers and forged documents has been exposed in courts around the country. So who will be the legal landlord?
    15 Jun 2011, 06:31 PM Reply Like
  • Duude
    , contributor
    Comments (3389) | Send Message
     
    Banks can't afford to become landlords, even that seems a bit more lucrative than letting people freeload on your property for 2 years. Foreclosures and short sales are the only choices for banks. Renegotiating principal doesn't work either as it rewards those that don't pay their mortgage. Not an incentive conducive to a healthy mortgage and/or real estate market. They have to just take the pain and get on with it. The sooner they're down pruning their inventory the sooner the housing market can rebound.
    15 Jun 2011, 08:04 PM Reply Like
  • buyitcheap
    , contributor
    Comments (1895) | Send Message
     
    HAHAHA you know how hard it is to evict people - even harder than foreclosiing! I love it!
    15 Jun 2011, 09:21 PM Reply Like
  • kmi
    , contributor
    Comments (4085) | Send Message
     
    The reason this is stupid is supply and demand - add supply and prices will fall. i.e. rents will go down.

     

    As per usual, if market forces are allowed to function without interference, the problem would go away faster.
    15 Jun 2011, 09:56 PM Reply Like
  • Marlin Keith DeBramaletta
    , contributor
    Comments (262) | Send Message
     
    I like Mr. Brownstein's idea. I wonder if banks are going to go in that direction with foreclosed homes. The possibility of walking into a bank that has ownership of a property and being able to rent the home is intrigueing and a good one. People rent movies from Redbox. I rent golf clubs when I head to the golf course. Walking into a bank and renting one of their properties is a great idea and a new line of business that can generate revenue for the bank. At the same time, this alleviates the tighter standards that come with home ownership. The business model should be interesting in regards to terms, lengths, etc. That is two venues or alternatives banks will have with foreclosed properties.
    15 Jun 2011, 10:20 PM Reply Like
  • JohnBinTN
    , contributor
    Comments (3881) | Send Message
     
    I'm sure banks will love to take on the expense of repairing the damage the previous "renter" had done to the house on his way out the door... In the end, this idea would cost the bank more in dollar terms, as well as headaches, than to just take cynic2011's (below) advice - eat the loss and bulldoze the structure.
    15 Jun 2011, 10:30 PM Reply Like
  • cynic2011
    , contributor
    Comments (652) | Send Message
     
    another approach is to destroy homes in areas where supply exceeds demand. it wouldn't take much to restore price stability.
    15 Jun 2011, 10:22 PM Reply Like
  • IgnisFatuus
    , contributor
    Comments (2136) | Send Message
     
    Back around 2008/2009, I heard an analyst on the radio talking about falling home prices and what it would take to stop the ever decreasing sales prices. His answer..."This can all be fixed by tomorrow...we just need to burn a million or so homes to the ground. Problem solved."
    16 Jun 2011, 12:17 AM Reply Like
  • MarquisdeLafayett
    , contributor
    Comments (62) | Send Message
     
    that kind of thinking is insane ... if the property has been condemed , and cannot be lived in for health reasons then fine ...

     

    what your talking about is akin to cash for clunkers on steriods ... Americans need homes , and with the comming Depression , people are going to need affordable places to live ..
    16 Jun 2011, 12:56 AM Reply Like
  • bbro
    , contributor
    Comments (9911) | Send Message
     
    Foreclosed homes for sale in my zip code have gone from 43 on February 14th to 25 today...in the dreaded 89031 zip code they have
    gone from 3,219 to 2660.
    16 Jun 2011, 04:04 AM Reply Like
  • Poor Texan
    , contributor
    Comments (3533) | Send Message
     
    Need to see the 10 yr. comparisons as you do with unemployment.
    16 Jun 2011, 12:19 PM Reply Like
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