Fannie Mae: America’s Biggest Landlord?
06. Nov, 2009 
3 Comments
Fannie Mae is going to let homeowners facing foreclosure rent their homes for up to a year to try to keep a bazillion foreclosures on its books from hitting the market.
The new program is for borrowers who don’t qualify for or haven’t been able to get a loan modification, according to Fannie’s news release. This includes investment properties with a tenant.
Under the Deed for Lease program, the borrower would transfer title to the property to the lender by completing a deed in lieu of foreclosure and then rent back the house at market rates — which hopefully will be cheaper than the mortgage payment on their current (or not-so current) loan. That’s a big bummer for foreclosure and REO investors but a progressive way to keep people in their homes.
Read the full Fannie release here:
http://www.fanniemae.com/newsreleases/2009/4844.jhtml?p=Media&s=News+Releases
So who do you call to clean the drains and fix the roof?? Barney Frank??
This program is incredibly hypocritical. Investors who attempted to assist homeowners remain in their homes by purchasing the homes at fair value and then leasing it back to them were called “equity skimmers”. It was called a scam. Legislation was passed in many states outlawing the technique.
I am not speaking about investors who took advantage of people. I am speaking about investors who have been fair to the homeowners.
The programs of those investors were run a lot more efficiently and better for the homeowner, market and all involved.
Good point. Hmmmmmmm I smell a business op….If Fannie doesnt go down the crapper first….