In this TCS Daily piece, the author suggests a solution (or at least a palliative) for the subprime mortage mess, namely allowing those who default on their loans to remain in the properties while paying market rental rates.
Not bad, but no reason why it needs to be mandated by the feds or the states. If this makes economic sense — and it probably does since lenders don’t want to have loads of hard-to-sell homes in their portfolios — the parties can renegotiate on their own. The government doesn’t need to administer another kick in the teeth to the meaning of a contract for this to happen.
