Housing giant Fannie Mae said last week it would let delinquent borrowers stay in their homes as renters after foreclosure, offering one-year leases at market rates to people who sign over their homes as a Deed in Lieu* of foreclosure.
Voluntarily surrendering homes instead of having the lender repossess them does not wallop the borrower's credit as much.
Fannie Mae would not say how many homeowners it expects to qualify for the program, but it has backed plenty of struggling borrowers.
This plan would help prevent vacant foreclosured homes from creating blight in neighborhoods. Since January, Fannie Mae has offered leasebacks for tenants whose landlord underwent a foreclosure. The number of renters who opted to stay on was modest, although the eligible pool also was small because most Fannie Mae homes are owner occupied.
From January 1 to September 30 only 271 tenants asked to remain as renters. An additional 3,500 tenants accepted "cash for keys". In that same period, Fannie Mae properties had 1,996 Deeds in Lieu, 24,162 Short Sales and 98,428 Foreclosures.
The other giant, Freddie Mac has offered a more limited leasing program for homeowners facing a foreclosure. This offer was month to month lease and they attempt to sell the property during the renters' occupancy.
Should you have questions regarding this, do not hesitate to call your bank, mortgage server or to me anytime.
Rafael A. Salinas
A sus familiares, amigos o compañeros de trabajo les puede ayudar mi información y/o servicio.