Foreclosure Rental Bill Introduced in House :: The Construction Management Pro

Foreclosure Rental Bill Introduced in House

The House of Representatives is considering a bill that would authorize FDIC-member banks, Fannie Mae, and Freddie Mac to enter into five-year lease agreements to rent REO properties back to the foreclosed homeowner or another individual.

The Neighborhood Preservation Act (H.R. 2636) was introduced by Rep. Gary Miller (R-California) and reportedly has bipartisan support. The legislation would address two key issues; it would give families a chance to remain in their homes while stabilizing home values by reducing the number of distressed properties on the market. According to the National Association of Realtors, distressed home sales accounted for 30 percent of single-family home sales in June. However in Los Angeles County they accounted for nearly half of all sales. “Something must be done to reduce the inventory of available homes and stop the further decline in home prices,” Rep. Miller said.

News surfaced last month that the administration was considering such a policy for Fannie and Freddie. Now, Rep. Miller wants to enact it with legislation. It’s not the first time Miller has pushed for a foreclosure rental policy. He championed a similar bill in the 111th Congress (H.R. 2529), which passed the House by a bipartisan voice vote, but was never acted on by the Senate. The Neighborhood Preservation Act is cosponsored by House Financial Services Committee Chairman Spencer Bachus (R-Alabama), Ranking Member Barney Frank (D-Massachusetts), and Rep. Carolyn McCarthy (D-New York).

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