Is it about to get very expensive? Just one more catastrophic result of decades of horrible government policies.
7 thoughts on “Renting A Home”
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Is it about to get very expensive? Just one more catastrophic result of decades of horrible government policies.
Comments are closed.
So what’s the problem here? Honoring loan agreements? Using unused property? The fact that Obama is moving on this probably indicates a deep problem that he can’t put off till after the election. And I don’t think it is at all a good idea to allow people to default on debt and then live rent-free in a home that they haven’t paid for.
Looks landlords will be making a nice windfall if rent prices are going up.
But unfortunately its not as simple as folks living free in the houses.
The underlying issue is the banks messed up their paperwork. They were so busy trading and bundling mortgages between themselves to make huge profits selling them to investors as “low risk” investments no one is now able to figure out who actually owns which home loan and where the actual documents are. The key problem is that while financial practices moved forward the state mortgage laws (which date from an earlier era) still require banks to show the actual loan documents to the court before they are able to compete the foreclosure process. This is they key problem from the Housing Bubble which makes it hard for investors buying houses because without a clear mortgage trail no title company will grant insurance on the title.
This is why even the many empty houses that have been foreclosed on have not been sold yet. The houses either side of my house in Las Vegas are empty. The owners of both moved out a while ago when they defaulted on their loans but the banks administering the mortgages are not able to clear either houses through the foreclosure process because they don’t have the original loan documents. I know because I inquired about buying them and both banks stated they where still ‘processing” the documents needed to complete foreclosure so the title company would be able to provide title insurance.
So the houses just sit their empty, with no maintenance and up keep while the banks figure out what to do. At least their is little potential for vandalism of the empty homes in the gated community I am in, but that is why banks are not pushing folks out. Better to let them live in the property while they figure out how to take title then leave it to empty and to the vandals. As for government’s role, the big problem is basically the local courts requiring the banks to follow the law, which is what the robo-signing scandal is all about.
There is no problem with courts requiring banks to follow the law and have their paperwork in order. The problem is the banks not being prepared with the paperwork. Fallout of Fanny and Freddy buying up risky mortgages, repackaging them, and selling them as “low risk” investments.
Peterh,
Yes, Fannie and Freddie should have never gotten so close to the big banks and gave in to their request to form MERS. Getting rid of MERS would be one step in at least making it easier to clean up a similar meltdown in the future.
It’s already more expensive. We rent a home, and are thus paying the owner’s full mortgage plus some, but have no mortgage interest deduction. Believe me, it’s expensive!
My wife and I sold our rental property last August. We weren’t making any money on it and there were too many headaches.
Ah, the joys of being 100% debt free again!
Government involvement screws up the economy. It creates hardship the demagogues love.
Ronald Reagan and Americans knew this thirty years ago. This is why Obama required the youth vote to get elected.