Loan Modification Renters
November 6th, 2009 | by ratefix |Fannie Mae is now saying it will rent homes to borrowers facing foreclosure under a new program that should help prevent foreclosures, vandalism and theft that occurs on newly vacant and foreclosed properties.
If you do not qualify for a loan modification than you can rent your home at market price, which can be no more than 31 percent of gross income for a family.
An incredible 18.8 millions homes were empty in the third quarter as banks seized properties from homeowners unable to make mortgage payments.
Under the Fannie Mae program, “You’re going to give owners a period of time to get their lives back together,’’ said Daniel Alpert, of Westwood Capital LLC, a New York investment bank.
This seems like a great idea. It gives homeowners additional time figure out if they can turn the corner and make their payments. The neighborhoods homes will not drop in value as a result of an empty home and the lender is not losing anything.