Washington, D.C. - Today, Congressman Joe Donnelly lauded the House of Representative’s passage of The Neighborhood Preservation Act, legislation that he introduced along with Congressman Gary Miller (R-Calif) this past May. The bill would allow a bank to rent a foreclosed property to the distressed owner as an alternative to eviction.
“I was extremely pleased to see this legislation passed in the House today,” Donnelly said. “As many homeowners continue to struggle in this challenging economic environment, we should do everything possible to help them stay in their homes. This bill would give banks the ability to lease a foreclosed home to the distressed homeowner facing foreclosure. In addition to helping out the homeowner, it would also minimize the negative impact that empty homes have on surrounding, occupied homes.”
H.R. 2529, The Neighborhood Preservation Act, would allow a bank to rent a foreclosed property to the previous owner as an alternative to eviction. Under the bill, the distressed homeowner could have the option to lease the property with the opportunity to buy back his home. This legislation would also enable the lender to wait to resell the property until the market is more stable, and thereby potentially recover all or part of the loss that would otherwise have been incurred due to immediate sale in the currently saturated market. Leasing foreclosed properties would not only help provide some relief to foreclosed homeowners, but to entire communities which are affected by ongoing instability in the housing market. Foreclosed properties that are left unoccupied often fall into disrepair and can threaten to bring down further the values of neighboring homes.
Two weeks ago, officials from the Obama Administration were said to be considering a similar plan to help distressed homeowners.
This bill passed unanimously and is now pending before the Senate.
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