Due to the financial collapse, over 15 Million homeowners are upside down on their mortgages. The governments promises are coming up short for people looking to get back on their feet after the crash. There are many ideas floating around about how to fix our financial difficulties, but one Law Professor thinks that a rent based program will help people get back into homes and help the housing market to stabilize.
Law Professor Brent White states that most homeowners default due to authentic distresses and not so much as a strategic plan simply because they have negative equity in their homes. In a study Professor White conducted, he found that many homeowners were paying, in some cases, three times the amount they would be paying if they were to rent a similar home. The default was a last resort for most homeowners. They felt that there would be no financial hope for their future if they had not defaulted and walked away form their mortgages.
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