Arianna Discusses The 'Right To Rent' Proposal On 'This Week' [VIDEO]

Arianna discussed a proposal that aims to help foreclosed homeowners stay in their homes, in an appearance on ABC News.

"I have a favorite good idea I'd like to mention, which is to deal with foreclosures with this bill called 'right to rent,'" she said. "You're foreclosing on the home and instead of throwing out the people, why don't you keep them in the home and have them pay rent at market rate?"

In addition to allowing foreclosed homeowners to stay in their homes, the right to rent proposal would also help spur a rebound in the housing market, Arianna said. Though home prices rose in half of major U.S. cities in August, the glut of foreclosed homes still on the market is driving home values down.

Foreclosures drag down the value of surrounding property values twice as much as vacancies, according to a recent study from the Cleveland Federal Reserve.

"There's no government money that is used," Arianna said of the right to rent proposal. "It means that you don't increase the supply of foreclosed homes for sale, which affect prices across the nation and it means that all of these people are not out of a home."

Watch via ABC News:

 

Comments

[Miguelando]

10:56 PM on 11/07/2011

While I am a big fan of Arianna, she misses the point. Rentals can only happen after the foreclosure. What we need is active participation in lawsuits against the lenders, faulty loan origination and assignments. That's where we make the banks own up to their illegal behaviors and how they set up borrowers like me to fail and then shorting the paper. Convince a lawyer to file a wrongful foreclosure case in federal court and eventually judges will have to take notice and rule against bank fraud. That is the revolution, beat them in our own judicial system!

[Grace Allison]

11:12 AM on 11/07/2011

Another way to rent is to lease to own. Most people have a problem with the down payments of 20%. And if they have been laid off or have credit issues, then the credit score will keep them from qualifying. What if banks, or other lenders were to setup a lease to own program where part of the lease money would go to the down payment for a short period of time. The lender would have the homeowner write their goals for home ownership and how they plan to make it happen.The leasing prospective homeowner would have the ability to create better credit and have a goal to own the home.

[cynic1]

09:01 AM on 11/07/2011

Most mortgages were repackaged and rebundled. The paperwork trail was not properly executed on many of these mortgage documents!! Therefore the real ownership is difficult or impossible to track. So Banks/mortgage companies are foreclosing with out proving they actually own the property/mortgage. Courts are under pressure to not rock the economic boat, so they don't look too hard at the documents. If this is contested by the home owner the system will be shown for the farce it is.

[cynic1]

08:51 AM on 11/07/2011

George Will is angry and on the defensive. The others just openingly discuss the topics.

The issues of our decline alluded to during Reagan are still with us. Reagan gave a pschological boost which was critical for the country. But really he lucked out with the advent of PC, email and related efficiencies brought by that boom.

Our longterm organic problems have not changed since the early-70's. We have just ridden some economic waves that hid the real problems.

[bryan broome]

08:32 AM on 11/07/2011

There you go Arianna trying to solve problems with common sense.

[muysuave41]

03:42 AM on 11/07/2011

George Will says Americans can get themselves out of the rut they are in if they wanted to but when Arianna proposes people should be able to rent their homes rather than face foreclosure, George, on queue from his inner Tea Party self, infers that is a bad idea and folks should keep getting mortgages instead. Come up with a contrarian idea, Mr Will slams it and then wants to keep failed programs in place to keep the USA economy in the dumps.

[ADVOCATE4ZPG]

06:48 AM on 11/07/2011

Will IS---and has always been---a not-so-closetted "social Darwinist" who fascinates some with his rhetoric and postures behind his concern for "freedom." Moreover, he has no empathy for the hardships and physical losses his obdurate, foreign policies inflict.

[klincklanc]

09:00 AM on 11/07/2011

He seems utterly detached from nearly all of America, no matter what your political persuasion is. Its as if he's talking to 19th Century America or perhaps the 1% that is exactly like him.

[Grichde]

09:10 AM on 11/07/2011

So let make a logic check here. People who do not, or can not make mortgage payments, people who most likely have lost their job and can not make mortgage payment, now will have the money to make rent payments for the same house they couldn't make mortgage payments on?

Doesn't sound like a workable plan to me.

[Justjack1]

03:21 AM on 11/07/2011

It will go like this, and its always like this with the GOP, they have the person they want to win WHICH IS PERRY, but they have 12 months, so they will milk the CAIN thing, until around March, when all of a sudden they will have the "REBOUND OF PERRY", at which point the GOP machine will go into full payoff and cheat mode, to include voter suppression, state policy changes regarding voting time, and sending out misinformation to voters.

[Grichde]

09:12 AM on 11/07/2011

Thought the article said something about people who can't make mortgage payment will now be able to make rent payments for the same house. You know those people who most likely are unemployed.

[Justjack1]

10:28 AM on 11/07/2011

lol, yes, you are right, i was just on my soap box i guess.

[eclub]

03:05 AM on 11/07/2011

This FRAUD on homeowners is vast; it involves pretty much any institution you can think of. It involves local county Tax Assessors offices; they assigned property tax collection to the mortgage servicers, they got paid that way, it involves FANNIE and FREDDIE, those are not government agencies, they own 70% of US mortgages, so they give these service companies their guidelines, and of course it involves the large banking institutions, and fraudulent real estate outfits and brokers. It is a vast fraud. The courts are in on it too. That's why nothing is shaking it loose.

[mellojack2]

01:05 AM on 11/07/2011

THE SAD TRUTH IS---THE SUBPRIME WERE NOT REAL "LOANS" TO BEGIN WITH---NO "FUNDING"---JUST COLLECTION RIGHTS ASSIGNED AT CLOSING---FALSE DEFAULT---COLLECTION RIGHTS SOLD OVER AND OVER---GIANT COVER-UP---MORTGAGE-BACKED SECURITIES ARE NOT MORTGAGE-BACKED---SO MUCH FRAUD BEING COVERED UP---UNSECURED DEBT MASQUERADING AS REAL "MORTGAGES"...MILLIONS OF ILLEGAL FORECLOSURES GOING THROUGH...HOMEOWNERS REAL VICTIMS OF MASSIVE FRAUD...OBAMA DOESN'T CARE...

[ADVOCATE4ZPG]

06:56 AM on 11/07/2011

Sorry, but the owners were aware of the selling prices and should have examined a year-by-year schedule of what they would be required to pay---including later 'resets.' They too were driven by the greed to own "more house" than they could expect to afford---given the best of circumstances.......

Profitting in a "financial bubble" is a high-skilled game and certainly not the time for longterm investing---as in a residence.....

[therightzwrong]

08:48 AM on 11/07/2011

Homeowners could not have been prepared for the massive job losses, the devaluing of their homes, the loss of their 401ks. Keep spewing the lies.. you may fool some but not all.

[DebtFreeGreenBacks]

12:38 AM on 11/07/2011

The real problem....? fractiona­l reserve banking gives 90% possession of all money created (upon loan creation) to the top1%.... who never owned the money in the first place...the newspaper princess won't talk about that ..because her bankers would drop her in a second ....you get it yet / now America?

[0334231]

12:21 AM on 11/07/2011

If you can pay the rent, then you should be able to pay your mortgage, by reducing the payments...Further, if the banks would of modified the adjustable loans from day one, we may not have had this problem..Banks stood firm as just relectant to help struggling homeowners. They would rather throw them out...I am not in favor of renting my own home , unless I can get it back....Why would I pay rent for a home that I paid over a ten year period of 100K in interest and principle..Why would I want to do that ?

[webnova]

12:09 AM on 11/07/2011

How about .... Not paying them at all and just sitting in YOUR house. I am talking about the ones who have servicers rather then a lender. If your note or mortgage was scrutinized, not recorded at the county seat and turned into a security then you have all the right to sit in YOUR home and not pay your mortgage. If you do your research you will understand. The Note and a Security can not and I repeat can not exist at the same time. Too turn it into a security the note has to be destroyed. No note ... no contract. No contract means ... Just that ... You Own the HOME. Your home has been paid off. Banks sending you a bill is a complete Fraud and Financial Criminal Actions and nothing short of Racketeering. The Banks aren't to Big to Fail ... They are Too Big to be Prosecuted.

[Victor Bobier]

12:43 AM on 11/07/2011

The Banks that are doing the Foreclosures should be broken up into smaller Banks, no exceptions.

[OkhamsRazzor]

03:03 AM on 11/07/2011

Since corporations are 'people', I would prefer we just take them out and hang them, for old times sake. But that is just a dream. (Might send a nice message)

[eclub]

12:05 AM on 11/07/2011

In other words, Ariana's proposal is NOT to help the poor home owner, but to help the market, and the banks?

I got a better Idea, why not find a way to refinance the homeowners? A mandatory government assistance, that makes it compulsory to prevent the foreclosure? Yes, that's better.

[ADVOCATE4ZPG]

07:03 AM on 11/07/2011

Who is to pay for this "mandatory government assistance"? The banks? The ratepayers who shunned "buying in" to the bubble market?

Your "better idea" is already embodied to an extent in EXTANT programs; however, there are many who will be unable to afford their mortgages under any renegotiated terms...!

[writechic]

07:09 AM on 11/07/2011

It's a bizarre proposal on the $$$ end, too, since rent is more than a mortgage. The real help would come with allowing the homeowner to refinance then tacking what's owed on the end of their mortgage.

[Grichde]

10:32 PM on 11/06/2011

I would guess if I loaned a person money to buy a home, they defaulted I'm not sure I would then want to become and landlord and management company. I would want to resell the house and get my money back.

Why ever happened to personal responsibility, buying housing over and above your ability to repay.

[AquaBuddha]

11:35 PM on 11/06/2011

People having homes is more important than real estate investments.

[brklynivn]

11:52 PM on 11/06/2011

The same thing that happened to professional responsibility for the institutions that were making loans without ensuring to some reasonable standard they would get paid back.

[Grichde]

06:48 AM on 11/07/2011

Yes you are right.

[Dave Decker]

02:56 PM on 11/08/2011

"Institutions" make strategic defaults all the time, then get bailed out.

[stevnjessie1]

09:35 PM on 11/06/2011

I was waiting 3 years for a plan to assist the honest homeowners who kept up with their payments. Since nobody is bringing that up, there must not have ever been a serious consideration for us. I think I've just been handed my hat.

[webnova]

11:58 PM on 11/06/2011

Do you have any Idea how many honest homeowners are getting screwed? Do you think that the foreclosures are true? If you do, then, you are so totally blind to the facts. There are so many honest homeowners who have a servicer rather then the original lender. If you have a servicer and your mortgage was scrutinized, not recorded, sent to the investor as a security then you will never ever own your home. You are paying someone who should not be paid at all. So tell me, which honest homeowner are you. Do you even know?

[OkhamsRazzor]

03:04 AM on 11/07/2011

Close. You weren't handed it, they dropped it in front of you so you can pick it up for a reason...
(oh, and they take the hat back too after they are done)