NEW YORK–U.S. officials are weighing a plan to let borrowers who have fallen behind on mortgage payments avoid eviction by renting their home instead, sources familiar with the administration’s thinking said Tuesday.
Under one idea being discussed, delinquent homeowners would surrender ownership of their homes but would continue to live in the property for several years, the sources told Reuters.
Officials have been frustrated as red tape and rising interest rates have slowed a housing rescue plan announced in February that was meant to refinance five million borrowers and lower monthly payments for four million more.
“It’s not doing as much as we would like. It’s not doing enough. We’ve been asking the banks to do more,” Treasury Assistant Secretary Michael Barr said in an interview with Reuters Television.
