Hate It!!! Fannie Mae To Rent Out Homes Instead Of Foreclosing

November 9, 2009

Foreclosures & Wholesales

Fannie Mae “Deed for Lease” program is not something I’m too excited about.   Yes, I tried getting it approved for a friend of mine when she was being foreclosed upon, but in general why should someone get a free ride?  With the new program, the rent amount cannot exceed 31% of homeowner’s monthly income, so if they live in $700,000 house and earn only $3000/mo – they get to stay in the property for a $1000/mo.

Fannie Mae "Deed for Lease" So guess who’s footing the bill again?  The taxpayers, of course! The same taxpayers who don’t get the $6,500 tax credit for purchasing a new house, per the new measure, because they make over $125,000/yr.

These homeowners have already lived in the property, for free, for about a year.  The property will have to be foreclosed upon and sold anyway, so why not just get it over with and not drag out the pain?

The bottom line is home buyers signed a contract stating if they can’t make the mortgage payments – they get foreclosed upon.   They got themselves into a house they cannot afford, and they now need to move out.

I don’t see anyone helping people who legitimately qualified for their loans, and allowing them to live in their homes for free, or pay reduced mortgage payments!  So what’s so special about those people who fudged their applications and and bought homes they could never afford to begin with?

“WASHINGTON – 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.”  Read more…

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