Pacific Mortgage Investment Blog

For the full story, click on this LA Times link: http://www.latimes.com/classified/realestate/news/la-fi-harney16-2009aug16,0,2888337.story

Here are two questions getting attention in Washington: When homeowners lose their houses to foreclosure, should they be able to stay in the property, leasing it back at fair market rent from the lender?
Should they also get an option to purchase the house from the bank at the end of the lease term, assuming they have the income to afford it?
Before leaving for their August break, Democrats and Republicans in the House took a rare, unanimous stand on both questions by passing the Neighborhood Preservation Act by voice vote. The bill was co-sponsored by Reps. Gary G. Miller (R-Diamond Bar) and Joe Donnelly (D-Ind.).
The bill would remove legal impediments blocking federally regulated banks from entering into long-term leases -- up to five years -- with the former owners of foreclosed houses. It would also allow banks to negotiate option-to-purchase agreements permitting former owners to buy back their houses.