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Fannie Mae Rental Program: Rent Your Own Foreclosed Home?

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 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."

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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."



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