Could the Right to Rent Stop the Foreclosure Hurricane?
When the foreclosure hurricane first hit, subprime borrowers absorbed the brunt of it. Homeowners who had been fooled with teaser rates suddenly faced balloon payments they couldn’t afford. Others couldn’t refinance because of prepayment penalties they hadn’t been aware of. And some people had made bad decisions and were now paying for it with their homes.
The crisis has now morphed—it’s hitting everyone with an equal-opportunity kind of vengeance—the prime, subprime, underwater and unemployed. And that makes passing the Right to Rent Act introduced by Democratic Representatives Raúl Grijalva and Marcy Kaptur, and cosponsored by House Judiciary Committee Chairman John Conyers among others, all the more critical. It would give homeowners who would otherwise by kicked out of their homes the right to rent for five years.