Website Wants to Help Spur REO-to-Rental Movement

Still in developing stages, ""HelpMeRent.com"":http://www.helpmerent.com/ is an online rental directory that specializes in connecting renters to rental property listings nationwide.

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The website is advocating for the conversion of foreclosed homes as rental properties and is helping to do so through its online services.

""People ask, isn't it better to sell bank-owned homes so that a rise in foreclosure sales will boost the housing market? We believe the answer is no,"" said Michael Koshet, president of HelpMeRent.com.

Koshet argued that the mass selling of foreclosed homes is a catalyst in falling property values.

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""Any time an investor buys all the REO homes on a street for rock bottom prices, the standard sale homes on the street have to compete with those prices,"" he said. ""That means the entire neighborhood experiences a decline in home values.""

Conversely, Koshet noted that renting those REO homes can keep property values stable while generating revenue for owners.

Koshet also wants to see government-owned REOs up for rent instead of for sale.

""The properties could generate income and make equity. That equity could be poured back into federal housing agencies, which are suffering too,"" said Koshet, who would also like to see banks follow suit.

Recently, Bank of America announced a Mortgage to Lease program that offers some of its customers facing foreclosure the option to rent the property rather than move out. The program is currently in the pilot stages.

Koshet, who views the rental movement as a way to revive the housing industry if it catches on, calls it a win-win situation for owners, tenants, banks, agents, and brokers.

Helpmerent.com is an online rental directory that specializes in connecting renters, agents, and owners nationwide. The site allows users to search through 100,000+ rental listings for free. The site is seeking venture capitalists who wish to invest in the enterprise.