Government to try it's hand in Property Management

By
Real Estate Agent with My Real Estate Pro

The Government has tried it's hand in the mortgage industry, insurance business, the banking industry, and health care, but they are now branching out to include trying their hand as property managers as well via Fannie Mae.

Fannie Mae just announced last week that they will begin offering a brand new concept of a "Deed for Lease™" program. They have had deed in lieu of foreclosure or short sale, but the new program is different. It allows the borrowers to voluntarily transfer their property back to the lender and then lease the property back from them at the current market rate. The program is designed for borrowers who do not qualify for or have not been able to obtain other loan-workout solutions, such as loan modifications, but do not wish to move or go through a short sale.

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance also may be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31 percent of their gross income.

This will be a new trick for them, and I'm interested to see how this plays out for them. Given their current response times and infrastructure I hope they contract out the actual management of the properties to confident local property management companies or else this is bound to be a disaster for them.

Click here to check if your loan is eligible to participate in this program.

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Comments (3)

Anonymous
Tom

Property management is a very tough business and if you can find a company which can be trusted.  It is a thankless job but an industry laden with crooks and thieves.  Do your due diligence if you are looking for property management and God bless you if you are good at it.  

To find some seller financing on homes and commercial property, take a look at www.ownercarryit.com  

 

Luck to all.  

Dec 02, 2009 03:44 PM
#1
Anonymous
Hillary Caston

Great information - I think that the government is in the car business as well...correct?

Managing property can be tough, and I agree with Tom's comment that it can be thankless as well. It will be interesting to see if the new rents will be at market rates, or if the government will adjust them downward, if needed, to meet the debt to income guidelines. And if they do adjust down to keep the home occupied, the question begs to be asked why they wouldn't adjust the payment down on a mortgage to keep the homeowner as a homeowner, and not a tenant?

These are all tough questions; however, it does good to remember that real estate, buying and selling a home, can be fun. To see what I mean, check out this video!

Thanks for your post!

Dec 16, 2009 01:48 PM
#2
Carolina Ruiz
My Real Estate Pro - West Covina, CA

Hillary- I loved your video. It was hilarious, and I don't think I've ever seen it done quite like that. Great interaction with the camera man. How many takes did it take to film that?

Dec 29, 2009 03:17 AM