Fannie Mae to Allow Borrowers to Lease Homes

[Housebroken13]

http://www.nytimes.com/2009/11/06/bu...r=yahoofinance

WASHINGTON (AP) — Thousands of borrowers on the verge of foreclosure will soon have the option of renting their homes from Fannie Mae, under a policy announced Thursday.

The government-controlled company, through its new Deed for Lease program, will allow borrowers to transfer ownership to Fannie Mae and sign a one-year lease, with month-to-month extensions after that.
The program “helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities,” Jay Ryan, a Fannie Mae vice president, said in a statement.
But the effort is likely to affect a relatively small number of homeowners. In the first half of the year, Fannie Mae took back about 1,200 properties through this process, known as a deed in lieu of foreclosure. That pales in comparison to the 57,000 foreclosed properties the company repossessed in the period.
While neither option is particularly attractive for the homeowner, the deed-in-lieu program does less harm to the borrower’s credit record.

[Magnuminsp440]

I wonder if they will, after a year, let you purchase the home at fair market value? Or, maybe your spouse?

[snapple candy]

HmmmmmmI wonder if this is just a way to stave off foreclosures and the lenders end up owning a whole heck of alot of real estate?

[SillyWorld]

Yes it looks like we will end up a bankers country, where banks own 70% of properties

[montana59451]

Sounds like they are playing MONOPOLY!