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

[Miles Jackson]

joanna wrote:
> 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
>
> _
You mean that a house with a mortgage payment of $6000/month would only 
rent for $1500/month?  If so, why on earth do people buy houses in SF?  
You can live in a much nicer place for much less money if you rent.  
Does the mantra of "home ownership" drown out all rational analysis?

Miles