[lbo-talk] CommonDreams 8/20/07: "Save subprime borrowers, not bloated bankers" by Dean Baker

joanna 123hop at comcast.net
Mon Aug 20 22:41:46 PDT 2007


Rick Kisséll wrote:


>Published on Monday, August 20, 2007 by /CommonDreams.org/
>
>
> Save Subprime Borrowers, Not Bloated Bankers
>
>by Dean Baker
>
>There is a simple and direct way in which the federal government can
>help out millions of moderate income families struggling to keep their
>homes. They can simply change the rules on foreclosure to allow moderate
>income homeowners the option to remain in their homes indefinitely as
>renters, paying the fair market rent.
>
>
The only problem is that rents, at least in the Bay area, are 1/3 to 1/4 the price of a comparable house. So the lien-holder would lose plenty. Also, the lienholder would become responsible for the property tax, thus further lowering his income.

Joanna



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