Foreclose or Rent?

The following article describes ideas being floated by the government to help unemployed and cash-strapped homeowners who are facing foreclosure. The housing bubble is what precipitated the current recession, and none of the measures that have been implemented up to this time have fully addressed the problem. It is the belief of NO MORE Mortgage that until the excesses of this bubble are worked out, the economy will not return to prosperity. It is open to debate as to whether government bailouts, which attempt to mitigate these harsh business cycles, are the best way to go, as opposed to letting the economy and the markets find a natural bottom from which they can re-build.

NEW YORK, July 14 (Reuters) – U.S. government officials are weighing a plan that would let borrowers who have fallen behind on their mortgage payments avoid eviction by renting their homes instead, sources familiar with the administration’s thinking said on Tuesday.

Under one idea being discussed, delinquent homeowners would surrender ownership of their homes but would continue to live in the property for several years, the sources told Reuters.

Officials are also considering whether the government should make mortgage payments on behalf of borrowers who cannot keep up with their home loans, tapping an unused portion of a $50 billion housing aid kitty.

As part of this plan, jobless borrowers might receive a housing stipend along with regular unemployment benefits, the sources said.

http://www.reuters.com/article/marketsNews/idUSN1429265720090714

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1. Do you own your home?