San Francisco Chronicle: Legitimized leasebacks picking up momentum
By Carolyn Said
Last week, Fannie Mae announced its new "Deed for Lease" program, which allows homeowners in default to lease their home from the lender in exchange for signing over their deed. Now housing advocates and some political leaders say the concept should be expanded further. They hope the government will prod banks to follow Fannie Mae's lead, and they propose leases of three to five years followed by the option to buy back the home.
This is not as simple as it seems. Signing up a Deed back to the bank can bring complications, such as living the homeowners open for big liabilities on their mortgage delinquency if they are not able to negotiated a delinquency waiver and have it recorded settle as agree without any recourse in favor of the homeowner. Home owner should seek professional advice before getting in to any lease agreement and signing their Deed.
Would the bank accept a lease option for 3 or 5 years at today's market value????. If they would, why are they not lowering their balance when offering a loan Modification?
Is this another trap for the homeowner? We know that for years the banks have try to get in to real estate and to have control not just on the lending, but also on the sale of your home.
I see this as a way to allow the market to have an up correction while bank's recuperate the property values and foreclose on the homeowners as they get the opportunity.
Why you in the right mine lease a home from your bank after you have sign over the Deed on your property and be compromise for 3 or 5 years just to find out that you steel do not qualify for the purchase price, as most homeowner did not qualify on the original purchase. Yes they did, on a low interest only rate programs, an adjustable interest rates or the famous option payment plan.
This is just another move by Fannie Mae and the housing advocates and some political leaders to continuo to find a correction for their own private interest and having no regards for the citizens.
As Thomas Jefferson ones wrote: The day when the banks control Real Estate the sons and daughter of the citizens will be homeless.
We are fighting over the Health care propose by the Administration, Words in Afghanistan and Iraq, and we are forgetting the one subject that we are losing in our back yard, a word that is been neglected by our politicians that have only one interest, who is going to be the greater contributor to their campaign.
I am not a professional writer or have a great command of the English language but I am so P.... about our current housing situation that helps' me get courage to write as a voice of discontent