According to an article in the Star-Telegram, Freddie Mac announced that it will allow homeowners who lost their homes to foreclosures to pay rent and remain in the property.
The article said:
Mortgage finance company Freddie Mac said it will allow some borrowers to rent out their homes after losing them to foreclosure...Under Freddie Mac's new policy, tenants and former property owners need to demonstrate that they have enough income to pay the rental bill.
That's right, after you lose your home to foreclosure you can now pay Freddie Mac rent and remain in the property. On the surface this may sound like "great news" for homeowners facing foreclosure ; but is it really? What about that huge down payment made on the home when it was purchased? What about the equity in the property? Homeowners facing foreclosure DO NOT want to become renters.
Homeowners facing foreclosure want companies such as Freddie Mac and Fannie Mae to modify toxic mortgages so that they can remain property OWNERS not renters. This is why it is critical that legislation is passed allowing homeowners to modify toxic loans during bankruptcy. We must not transform the middle-class into renters because they were given toxic loans. This rental scheme for homeowners facing foreclosure is fishy to say the least.