A new program  was recently introduced by Fannie Mae , essentially it does create a new option for people losing their homes. .

They turn in their homes to the bank . .

and the bank becomes a landlord to rent it back for market value.

Here is an excerpt:

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Introduction

Fannie Mae is introducing the Deed-for-Lease Program (D4L), a program designed to minimize family displacement, deterioration of neighborhoods caused by vandalism and theft to vacant homes, and the effect these have on families, communities and home price stabilization. D4L allows qualifying borrowers of properties transferred through deed-in-lieu of foreclosure (DIL) to remain in their home and community by executing a lease of up to 12 months in conjunction with a DIL. Investment properties that are tenant-occupied may also be considered as long as the borrower is cooperative in providing information from the tenant to facilitate the D4L.

With the D4L program, servicers are expected to follow their regular process in considering a borrower for a DIL in accordance with Fannie Mae’s workout hierarchy. Once the servicer determines a borrower is eligible for a DIL through its normal course of business, the servicer will notify Fannie Mae that the borrower may also be eligible for D4L based on an initial screen of predetermined eligibility criteria. Fannie Mae, or its designee, will take the steps necessary to further verify property and borrower eligibility, determine the rental rate, and, if appropriate, execute the lease agreement. To qualify for D4L, the occupant of the property must have the ability to pay market rent not to exceed 31 percent of his or her monthly gross income. The lease agreement will be contingent on successful completion of the DIL.

Effective Date

Servicers can begin offering D4L immediately.

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Full information here. .