Fannie Mae plans to allow homeowners facing foreclosure to stay in their homes and rent them for up to one year as part of the latest effort to help troubled borrowers while keeping a glut of foreclosed properties from hitting the housing market. The Deed for Lease Program, which Fannie plans to roll out on Thursday, will offer borrowers who fail to complete or don't qualify for a loan modification or other workout to deed their property to the lender in exchange for a lease. Borrowers-turned-tenants will be able to sign leases of up to 12 months and will pay market rents, which in most cases are lower than the cost of mortgage payments. Fannie Mae wouldn't say how many homeowners it expects will take advantage of the program. The company acquired 57,000 properties through foreclosure during the first half of the year, bringing its total real-estate owned inventory to 63,000 properties valued at $6 billion. The rental program will allow Fannie to hold inventory off of already saturated housing markets and makes a bet that the housing market will be stronger one year from now. "If you keep more people in their homes, it's better for the community. It's better for the financial institutions that own those homes," says Jay Ryan, vice president of equity investments at Fannie Mae. "Hopefully less foreclosure product on the market will help stabilize those communities." Borrowers who haven't missed any mortgage payments aren't eligible for the program, and the borrower's mortgage servicer would have to show that a borrower isn't eligible for a loan modification before the homeowner could apply for the Deed for Lease program. http://online.wsj.com/article/SB125743289932030933.html
They've been offering this for while to renters. Makes sense to keep someone in the house and at least collect something.
govt is a total bunch of loser douchebags!!!!!!!!!!!!....i guess they never disappoint in their bs!!!!
Didn't the mafia did something like this? They rent you your own home? Maybe they use different methods (mafia uses thugs, banks used signed documents), but the outcome is the same.
Bump ....................../´¯/) ....................,/¯../ .................../..../ ............./´¯/'...'/´¯¯`·¸ ........../'/.../..../......./¨¯\ ........('(...´...´.... ¯~/'...') .........\.................'...../ ..........''...\.......... _.·´ ............\..............( ..............\.............\... Gov't Fags.
I'm glad I was not the only person who saw this and saw the end of American civilization as we know it. So, what happens when these folks are renting and the housing market tics up. Are they then thrown out of their homes with a month's notice? Or do they just get to stay there renting forever? At what price? The same or higher? Do they get a rent to own option? Can they buy back their house? At what price - a lower one? Will they get a government guaranteed mortgage at a favorable rate despite their default? What happens if they can't pay their rent? Is it now a felony? Is it subtracted from their withheld taxes? Who will administer the program? Were there competitive bids? (har har) I was in the market for a new home, or at least seriously considering one. This makes me have a vote of 'no confidence' in the housing market. I again am in no hurry to buy until we see EUR/USD over 2.0
Just sounds like a one year lease, renewable each year...albeit usually means it can be terminated along the way due to certain actions...of course that'll depend on the wording of said lease. Yep rent your home for a year, then finally get kicked out because the lease won't get renewed! Or fail to pay the rent and you're evicted anyway... Love to see how many could even afford the "market rents" in some of these places...