Comments on: renting foreclosed houses to former owners http://moslereconomics.com/2009/11/05/renting-foreclosed-houses-to-former-owners/ St Croix, United States Virgin Islands Wed, 23 May 2012 10:08:09 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dave Begotka http://moslereconomics.com/2009/11/05/renting-foreclosed-houses-to-former-owners/comment-page-1/#comment-13046 Dave Begotka Fri, 06 Nov 2009 12:43:05 +0000 http://www.moslereconomics.com/?p=9340#comment-13046 Peter Shiff says the maintence and taxes on the houses are going to kill this? Do you think they are missing this and what would you do? Peter Shiff says the maintence and taxes on the houses are going to kill this?

Do you think they are missing this and what would you do?

]]> By: Paul Wilkinson http://moslereconomics.com/2009/11/05/renting-foreclosed-houses-to-former-owners/comment-page-1/#comment-13039 Paul Wilkinson Fri, 06 Nov 2009 02:23:15 +0000 http://www.moslereconomics.com/?p=9340#comment-13039 Warren, no surprise your individual creativity front ran Fannie Mae's institutional creativity. Wonder if Congress might make a percentage of residential lease payments tax deductible to equalize the tax treatment of renters and homeowners? Don't know what that percentage should be -- perhaps the average percentage of interest that comprises mortgage payments less a discount for homes held free and clear? At least a partial deduction for lease payments would mitigate the existing market distortion that encourages people to incur mortgage debt relative to savings, business investment, consumption, other debt, or other economic activity that could enhance aggregate utility. Of course, landlords of tenants that would find such a deduction valuable might then think they could raise rents -- but that, in turn, would increase property values, which some people might think is a good idea. Seems a more realistic possibility than phasing out the existing mortgage interest deduction. Warren, no surprise your individual creativity front ran Fannie Mae’s institutional creativity. Wonder if Congress might make a percentage of residential lease payments tax deductible to equalize the tax treatment of renters and homeowners? Don’t know what that percentage should be — perhaps the average percentage of interest that comprises mortgage payments less a discount for homes held free and clear? At least a partial deduction for lease payments would mitigate the existing market distortion that encourages people to incur mortgage debt relative to savings, business investment, consumption, other debt, or other economic activity that could enhance aggregate utility. Of course, landlords of tenants that would find such a deduction valuable might then think they could raise rents — but that, in turn, would increase property values, which some people might think is a good idea. Seems a more realistic possibility than phasing out the existing mortgage interest deduction.

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