Reduce, Refinance, and Rent? The Economic Incentives, Risks, and Ramifications of Housing Market Policy Options
Summary
This report discusses the background of financial panic in September 2008, precipitated by the housing bubble of 2006. In particular, the report looks at options that the 112th Congress has regarding the housing market: (1) reducing mortgage principal for borrowers who owe more than their homes are worth, (2) refinancing mortgages for borrowers shut out of traditional financing methods, and (3) renting out foreclosed homes.
Note: CRS reports are prepared for Members of Congress and their staffs. This summary is provided for informational purposes and does not constitute legal advice.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.