This is a program designed to minimize family displacement, deterioration of neighborhoods caused by vandalism and theft to vacant homes, and the effect these have on families, communities, and home price stabilization.
It also helps save money because the lender does not need to complete the often lengthy and time-consuming foreclosure process.
Fannie Mae executives said the rental program is designed to help delinquent homeowners who don't qualify for a loan modification, but still want to stay in their homes.
The plan could be particularly attractive in our area where homeowners are stuck paying large mortgage payments on properties that are now worth less than they paid for them.
At the same time, rents have been falling in the area. A homeowner could wind up paying far less every month by renting their current home.
Still, the effort is likely to attract a relatively small number of homeowners. In the first nine months of 2009, Fannie Mae took ownership of nearly 2,000 properties through a process known as a deed-in-lieu of foreclosure. That pales in comparison to the 90,000 foreclosed properties the company repossessed in the period.
For further information: https://www.efanniemae.com/sf/servicing/d4l/
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