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RENT TO BE ALLOWED OVER FORECLOSURE

Real Estate Agent with Coldwell Banker Residential Brokerage

November 17, 2009 02:32 AM

RENT TO BE ALLOWED OVER FORECLOSURE

Fanny Mae has announced a new policy allowing borrowers approaching forclosure the option of renting their homes from Fannie.

The program...DEED FOR LEASE... will let borrowers transfer ownership to Fannie Mae and sign a 1 year lease with month to month extensions after that. The plan will keep families in the homes and stabilize neighborhoods. In the 1st half of the year, Fannie took back almost 12,000 properties thru this process, while repossesing 57,000

Freddie Mac has a similar rent back program in place since March

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Suzy Morris

The Morris Team - Carlsbad, CA

Good post. There are so many questions about this program. What will ultimately happen to these homes? Fannie will have to dispose of them since they are not set up to be a long-term landlord and property management company. And who will maintain the homes? The former owners (now only tenants) don't have much incentive to do repairs.

Nov 17, 2009 02:40 AM

Anthony Stokes-Pereira

Better Homes and Gardens Rand Realty - Nanuet, NY

Realtor

Hi Alan;

Another new program, lets hope it is on solid ground. Great idea!

Nov 17, 2009 02:41 AM

Jon Budish

Resident Realty - Fort Collins, CO

It seems like a feasible program, but I think it will only prolong a true housing recovery.

Nov 17, 2009 03:15 AM

Charles Stallions