Good idea/bad idea?

The govt is passing a bill (HR2529) that allows banks covered through the Federal Deposit Insurance Corp. to lease back houses it owns through foreclosure.
Banks are now in leasing business huh? How do you think this will affect how the banks sell their foreclosure properties if they can just lease them out? Does anyone think that they’ll hold out for higher sale prices on the foreclosure properties because they can just lease them out and have some money coming in? Bad for investors? Artificially keeping sale prices higher vs prices falling without the govt intervention? or do banks not want to be in the rental business so they’ll dump the properties anway?

Terrible idea,
We all know we would’nt rent back a house to the same people who could’nt pay the note.If it won’t work for us,it won’t for them.
Govt screws up everything they touch.They are still covering rent for katrina "victoms"here…Freakin four years later!!!They put people in those trailors that cost them $75k to buy and maintain then pay your rent,wherever you find a place.?? Crazy,this is’nt speculation either it’s people I know!!Ridiculous,the govt is sooo stupid!!

I agree with bama/
Good in theory I guess. Banks lease homes and get some income, and sell them when economy recovers. It isnt going to work though IMO, because the housing market still has a LONG WAY to go. Were still HORRIBLY overpriced. Prices still need to fall to where the market wants it. Banks arent going to be able to sell these houses for what they want.

Aint’ gonna work, cause its the government.

Republicans say they are for a capitalist society and no government intervention right? Stay with me here…

Why should the government stop banks for leasing properties to whoever they feel is right? Letting them do it is letting capitalism work as designed right? If it is a bad idea and it fails (ie the banks lose money on a stupid idea) then the bank gets punished by the free market. I would think republicans would be FOR letting banks do what they want, not stopping them from doing it. We all know they will get burned by people that couldn’t pay the mortgage and can’t pay their lease payments. Why interfere with the free market?

“We all know they will get burned by people that couldn’t pay the mortgage and can’t pay their lease payments. Why interfere with the free market?”

All for it as long as they don’t come back hat-in-hand lookking to bailed out from another bad decision…

Unfortunately, history tells us different… hence the argument against it…

So let them do it then tell them tough cookies when it burns their ass.

Thats what I would do. Thats what I would have done with GM/AIG/others, but we all know our government LOVES giving out bailouts. Let the banks do whatever they want, as long as they dont become public funded.

Once the govt interjects it’ll be never ending and very costly.