Fannie Mae To Become A Landlord

If you have foreclosed on your home and Fannie Mae is the owner of it they will rent the home back to you for up to a year.  I guess it’s not a bad idea if it keeps some of the supply of foreclosures off the market for a little and hope values are higher in a year. 

Fannie better hope that these borrowers are better at paying rent than they are with their mortgage.  The article below did state that the person has to be behind on their mortgage and the monthly rent has to be 31% or less of your gross income.  Not a bad idea but we will see how it works out.

“If you keep more people in their homes, it’s better for the community. It’s better for the financial institutions that own those homes,” says Jay Ryan, vice president of equity investments at Fannie Mae. “Hopefully less foreclosure product on the market will help stabilize those communities.”

http://online.wsj.com/article/SB125743289932030933.html?mod=rss_whats_news_us