Is Fannie Mae In The Rental Business?
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It looks like Fannie Mae is getting into the rental business. They are instituting a new program where, if you qualify, you can hand over your deed but continue to live in the home and pay rent. I say, what a great idea! I heard this idea being talked about at least 18 months ago but better late than never. It strikes me as a win-win situation. It gives a person time to deal with losing their house and doesn’t displace the kids.
You probably didn’t end up in foreclosure and lose the house because you forgot to pay the mortgage. It is very challenging for families in that situation find alternate housing and cover the expenses of moving. Fannie Mae’s rental program is also good for their bottom by keeping money coming in from the property. It is refreshing – and unusual – for the government to get it right. I would also bet that if this program goes well, there may be a buyback option offered down the line.
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Related articles
- Fannie Mae offers borrowers option to foreclosure (sfgate.com)
- Fannie Turning Borrowers Into Renters (hsh.com)
- Leasing back your house after foreclosure (fresnobeehive.com)
- Fannie Mae to Allow Borrowers to Lease Homes (nytimes.com)
