Turning Government-Owned Foreclosed Homes Into Rental Properties

PHILADELPHIA (CBS) - The President is asking for ideas. He wants to turn the government-owned foreclosed homes into rental properties that could be used in multiple ways.

Arlene Shaw, a real estate agent with Keller Williams and owner of Plymouth Rock Search and Abstract, thinks this is key to turning some neighborhoods blighted by foreclosure around. How does rent to own work?

"It's a two-year rental and they put $800 a month into this rental. Two hundred of the $800 goes into down payment money. So, in two years they will have some money to put down onto the home."

But Shaw says officials should try to stay away from zoning changes, in other words, converting a residential property into a doctor's office or other commercial use. However, she says in her experience, neighbors welcome it.

"Rent to own; I would say most neighbors would agree (it is) much more of a comfort because the home is not vacant, so there is no vandalism going on. There's usually a lot of pride going into that home and they are more willing to fix."

Shaw says it will take a team of experts to come up with a solution that is workable in all 50 states.

Reported by Michelle Durham, KYW Newsradio 1060