We will have the government as a landlord. For the sake of the persons who cannot make their mortgage payment we will through Fannie Mae be government landlords. Fannie just got more money from the federal government (our collective monies) because than were in trouble again.
Now, Fannie Mae will help those who can't pay the mortgage by leasing their homes back to them. What does the homeowner need to do? Give them a Fannie Mae a deed-for-lease. Does this sound good to you? They must give up private ownership of their home to the government and become a renter.
What happened to the loan modification? Or was that simply a ploy to get homes out of the hands of private citizens? Not sure.
Yes, it could be a saving grace for those who do not have money because they were cut back on a job or one spouse lost their job. The program does not have a way for the homeowner to get back to ownership. The lease is for one year and then goes to month to month.
Fannie Mae stated that they can rent at current market rates established by their management company. The idea is that Fannie Mae will be able to sell the home at a higher price in the future.