Can't pay the mortgage? You still might be able to stay in your
home. Government-controlled mortgage company Fannie Mae
is going to give borrowers on the verge of foreclosure the option
of renting their homes for a year.
The change announced Thursday could give a temporary break
to thousands of homeowners, but critics question whether it will
only add to the mushrooming losses at the company, which has
received billions in taxpayer money.
The new "Deed for Lease" program will allow homeowners to
transfer title to Fannie Mae and sign a one-year lease, with
potential month-to-month extensions after that. It also helps
save money because the lender doe s not need to complete
the often lengthy and time-consuming foreclosure process.
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.
It also does less harm to the borrower's credit record.
No comments:
Post a Comment