Study HERE looks at potential savings to family (loss to mortgage holder) from legislation that would allow families in foreclosure to live in house for 5 years at market rent. Can't imagine that proposal is going anywhere any time soon, but study does include some calculations of potential cost savings using different scenarios.
In looking at projected savings for Portland metro, appears to me that savings from renting are somewhat overstated as assumption is based on comparison with FY 2010 2 BR Fair Market rent. Claimed savings shrinks from $703 per month using study assumption to only $224 per month when using FY 2011 3 BR Fair Market rent.
See table pasted below for detailed calculations for Portland Metro:
| $283,800 | Median Sales Price |
| $212,850 | 75% of Sales Price |
| $197,951 | Mtg Amount@93% |
| 6.00% | Int Rate |
| 360 | Term |
| $1,187 | Principal and Interest |
| $177 | Taxes@.75% |
| $177 | Insurance Maintenance@.75% |
| $1,542 | Total PITI |
| $839 | FY2010 2 BR FMR |
| $905 | FY2011 2 BR FMR |
| $703 | Claimed Savings Using FY 2010 2 BR FMR |
| $637 | Calc Savings Using FY 2011 2 BR FMR |
| $1,222 | FY 2010 3 BR FMR |
| $1,318 | FY 2011 3 BR FMR |
| $320 | Calc Savings Using FY 2010 3 BR FMR |
| $224 | Calc Savings Using FY2011 3 BR FMR |
Originally created and posted on the Oregon Housing Blog.
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