Why Turning Foreclosures To Rentals Makes Sense

How about that? A politician with an idea that makes sense.

Actually, it's an idea I suggested in this very blog months ago, but maybe this publicity can make it come to life.


http://reed.senate.gov/press/release/reed-seeks-to-convert-foreclosed-homes-into-affordable-rental-units-provide-relief-to-victims-of-housing-crisis_--


If only this had been done a couple of years ago. The idea is to take foreclosed properties and turn them into rental units. This would have given many consumers who can't afford, can't get, or don't want a mortgage the ability to live in a house instead of a cramped apartment. Maybe they'd want to buy a home down the road. Even if they don't, they would be providing monthly revenue for the bank that owns the home, instead of sitting empty.

Multiply that scene by thousands, and that probably would have provided the banks with enough money so that our elected politicians wouldn't have been dumb enough to give these banks "bailout money". Only to have some of the banks hand that money to executives for bonus money and let the housing market continue to go down the tubes. And, of course, cause the government to cut back on everything else that bank money should have gone for.

Turning foreclosures into rental properties would also take thousands of listings off the market, and leave the buyers to go after properties offered by motivated sellers. At higher prices, of course. Taking foreclosures off the market would eliminate the majority of the vastly discounted property prices and therefore increase property values once again.

For a change, something a politician wants to do makes sense, and would actually benefit consumers. If only the others could understand that, this time.