Fannie Mae to allow borrowers in foreclosure to lease back homes -- latimes.com

icon gravatar.comwww.latimes.com/business/la-fi-fannie6-2009nov06,0,4259740.s...
sent by Sparrows since 92 days 16 hours 29 minutes, published about 92 days 4 hours 11 minutes
Mortgage giant Fannie Mae said Thursday that it would throw a lifeline to some people losing their homes to foreclosure by allowing them to lease those properties back for up to a year at market rental rates. The move is the latest in a series of steps by lenders trying to manage inventories of foreclosed homes on their books in an attempt to keep a wave of properties from slamming a housing market that has shown some signs of recovery. The news came as Fannie Mae reported a net loss of $18.9 billion in the third quarter ended Sept. 30, compared with a $14.8-billion loss in the second quarter and a $29.4-billion loss in the third quarter last year. The latest loss pushed Fannie Mae's government regulator Thursday to request $15 billion from the Treasury Department. It was the fourth time the Washington company had drawn on its federal financial lifeline since Fannie and its sister firm, Freddie Mac, were seized and placed under government stewardship.
tags: fannie mae, deed for lease program
3 commentscategory: Abuse of Power/Corruption karma: 179

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  1. #1    This would be funny if it were not so tragic. This program is telling me that if I turn over my deed to the house, become a mere tenant on a month-to-month basis, allow my privacy to be invaded by buyers wanting to buy my house, I can get out of a foreclosure and all of its headaches.

    Boy that sounds like a real deal, EXCEPT it doesn't show what happens if I do not want to hand over my deed, but just try and sell my house to get some of the change back that I put into it. Rather than walking away from it entirely. It appears that the answer to that revelation is that I cannot do that. I must be this tenant.

    For the person who has been in their house for years and made it their own, this is not a very good answer. For the person waiting to get out, and never was going to pay up on the house b/c they never planned to stay that long, this could be the perfect way to get out.
    written by Sparrows since 92 days 16 hours 22 minutesSparrows
  2. #2    Does the word, "Altruism" describe this program? I don't think so.
    written by protect_democracy since 92 days 4 hours 19 minutesprotect_democracy
  3. #3    But the word, "theft" does.
    written by Sparrows since 91 days 22 hours 19 minutesSparrows
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