- Feb 22, 2007
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I realize that fannie mae has thousands of foreclosures to deal with, but nobody seems to be thinking this through. The new program allows someone who may lose their home to sign it over to the government and then they become a renter with a 1 year lease. Sounds good at first for the homeowner, but who is responsible for the upkeep now ? Who do they call when the roof leaks, the window breaks. Are they expected to do repairs and pay rent ?
The program will be run by HUD, public housing redefined.
http://www.nationalledger.com/artman/publish/article_272628886.shtml
The program will be run by HUD, public housing redefined.
http://www.nationalledger.com/artman/publish/article_272628886.shtml
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 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."