Right To Rent Bill
This is just a proposal but it’s 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.
I guess it’s not a bad idea if the borrower who is not making their mortgage payments decides to make their rent payments. It would create cash flow for the bank and allow home values to regain some value assuming that the market does stabilize.
There are stipulations in order to qualify for this. Yep, always a catch and you always need to read the fine print. 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.