According to an article in the Star-Telegram, Fannie Mae is offering homeowners facing foreclosure the option of leasing their home instead of going through the foreclosure process.
The article said:
"The government-controlled company, through its new "Deed for Lease" program, will allow borrowers to transfer ownership to Fannie Mae and sign a one-year lease, with month-to-month extensions after that."
Homeowners who want to rent instead of own must provide proof that they can pay the rent; but they won't get a lease longer than a year. And just in case you don't understand the "benefits" of this "wonderful" program, Fannie Mae Vice President offers these words, " The program will 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."
Oh really? So let's see...homeowners facing foreclosure are supposed to just hand over their properties to Fannie Mae without a fight. After paying thousands of dollars in upfront costs and tens of thousands over the years they paid a mortgage, now they're suppose to just become renters? Gives us a break! The truth of the matter is that Fannie Mae's balance sheet is riddled with foreclosures and Fannie Mae knows that going through the foreclosure process on thousands of homes will cost them tons of money. They don't want to do that. What they prefer is that homeowners simply sign over their homes to them and become renters in what they once owned.
Don't fall for it. Don't allow Fannie Mae to play your emotions and manipulate you into handing over your home. You can keep your home and gain leverage to negotiate the terms of repayment using bankruptcy. Lenders know that bankruptcy is a powerful tool so they are coming up with all types of games to steal homes without facing bankruptcy or even a foreclosure process. Before accepting any "deed for lease" program or other ridiculous versions of it, consider all of your options, especially bankruptcy.