Renters Left Out of Housing Bailout?
While the Obama administration's housing plan allows some homeowners to refinance even if they don’t have equity in their homes and subsidizes the cost of lower monthly mortgage payments for borrowers at risk of default, it appears to leave one group out in the cold -- renters. That's upset some who sat out the housing boom and rented only to see taxpayers come to the rescue of some homeowners who are in over their heads.
There are, however, benefits for the renter:
In several housing markets, home price declines have ushered in housing affordability that's near its lowest level in decades;
The stimulus bill enacted last month offers an $8,000 tax credit for first-time home buyers and expands funding for rental programs offered through the Department of Housing and Urban Development; and
More help could be on the way for renters who now face eviction because their landlords have gone into foreclosure. In Congress, Rep. Keith Ellison (D., Minn.) has introduced a bill that would require anyone who buys a property at a foreclosure sale to give a tenant 90-days notice before eviction. Freddie Mac has also finalized its guidelines that will allow non-owner tenants to continue renting in homes that have gone into foreclosure on a month-to-month basis. Freddie will also allow owners who have lost their homes to foreclosure to rent the homes under similar leases.