National Ledger - Fannie Mae Rental Program: Rent Your Own Foreclosed Home?

Share This \| Related Fannie Mae Rental Program: Rent Your Own Foreclosed Home?
By Jon Shanks Nov 6, 2009

A Fannie Mae rental program will allow one-time homeowners that have allowed their house to go into foreclosure to actually rent the very same house back at "market value" in something called a "Deed for Lease" program. Taxpayer cost is not yet clear.

Fannie Mae Rental Program: Rent Your Own Foreclosed Home?

Fannie Mae execs believe it is a good solution to the thousands of bad loans littering neighborhoods and causing blight as homes sit vacant and begin to deteriorate.

The Wall Street Journal reports: "The "Deed for Lease" Program lets borrowers who don't qualify for loan modifications transfer their property to Fannie Mae in exchange for a lease. Borrowers-turned-tenants will pay market rents, which in most cases are lower than the cost of mortgage payments, and might be offered extensions when their leases expire."

***

The program helps "eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities," Jay Ryan, a Fannie Mae vice president, said in a statement.

AOL News notes, "Fannie Mae's sibling company, Freddie Mac , launched a similar effort in March. That policy, however, requires the foreclosure to be completed and only allows month-to-month leases."

Today's Most Popular Stories:

Share This:
To bookmark and share this site, please use the links below:
Tag in Del.icio.us | Digg This | Stumble Upon
Email this article | Print this article | Write the author

Read more from author Jon Shanks

Email this article
Printer friendly page

Write the Author:

Related Information

For more stories from The National Ledger's independent writers on DC Journal please visit our DC Journal page.

About
National Ledger

More
Important Links

FEEDS: News | Pop Culture | Ledger Pop | Ledger DC