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  • New face of public housing

    Uncle Sam as Landlord

    In 2005, as we saw tracts of homes spring up all over South Florida, Nevada, Arizona, and California, we guessed that in the aftermath of the housing bubble, the federal government was eventually to own not only the securities that backed the mortgages on these homes, and then the mortgages, but eventually the homes themselves. We envisioned Uncle Sam as landlord, renting houses and condos built by Toll Bros. and other major home builders. That day has arrived.
    Fannie Mae to rent out homes instead foreclosing
    November 5, 2009 (AP)

    Fannie Mae to allow troubled borrowers to hand over deeds to homes, let former owners rent

    Thousands of borrowers on the verge of foreclosure will soon have the option of renting their homes from Fannie Mae, under a policy announced Thursday.

    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.

    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," Jay Ryan, a Fannie Mae vice president, said in a statement.
    AntiSpin: During the 1980s, the federal government sought to replace public housing with private housing made available to lower income families via affordable, government-backed mortgage loans. But the fact is, not everyone can afford to buy a home or condo. Now the process of privatization of public housing begins to run in reverse.

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  • #2
    Re: New face of public housing

    One wonders what the rent will be relative to the debt service on the mortgage ... must be a significant discount ....one wonders if the GSE's will publish this info.

    Will we be surprised when we discover the rents are below market rates ... Nah ..."a dollar and a deed is all you need"

    Comment


    • #3
      Re: New face of public housing

      Jingle-free ?

      Jingle- Lite ?



      Kris- Jingle

      Comment


      • #4
        Re: New face of public housing

        picture of the future- a large class of permanently unemployed, residing in nationalized, run-down, suburban housing tracts, not driving anywhere with gasoline at $5/gal, and with - perhaps- the occasional bus for public transit. grim.

        Comment


        • #5
          Re: New face of public housing

          Originally posted by jk View Post
          picture of the future- a large class of permanently unemployed, residing in nationalized, run-down, suburban housing tracts, not driving anywhere with gasoline at $5/gal, and with - perhaps- the occasional bus for public transit. grim.
          Do they fence them in?

          Comment


          • #6
            Re: New face of public housing

            Will forclosures be exchanged for evictions?

            Comment


            • #7
              Re: New face of public housing

              month-to-month extensions after that.

              a bureaucratic nightmare?

              Comment


              • #8
                Re: New face of public housing

                he'll help us..................

                Comment


                • #9
                  Servicing Policy Update: Announcement 09-33: Introduction of the Deed-for-Lease Program

                  The government as our largest landlord? Not going in the right direction for sure....

                  Servicing Guide Announcement 09-33: New Deed-for-Lease Program



                  Fannie Mae has issued the following Announcement:

                  On November 5, 2009, Fannie Mae issued Servicing Guide Announcement 09-33: New Deed-for-Lease Program. This announcement introduced the Deed-for-Lease Program (D4L), which allows qualified borrowers with properties transferred through deed-in-lieu of foreclosure (DIL) or their tenants to remain in their home by executing a lease in conjunction with a DIL.

                  Link to whole release...

                  https://www.efanniemae.com/sf/guides.../2009/0933.pdf

                  Comment


                  • #10
                    Re: Servicing Policy Update: Announcement 09-33: Introduction of the Deed-for-Lease Program

                    [quote=Kimmons;131873]The government as our largest landlord? Not going in the right direction for sure....

                    Somewhat rhetorical: were we going in the right direction at any time in the past? And, if so, how did we get here?

                    Not directed specifically towards you, Kimmons.

                    Comment


                    • #11
                      Re: New face of public housing

                      After a year of leasing, the government will offer the renters to buy the homes they live in at a significant discount from their original price. A perfect way to offload the property and ensure votes for the incumbents who 'fought for the little guy.' :rolleyes:
                      Obviously, the sale will be at a loss to government, but, hey, it is not their money anyway--it's ours.

                      Comment


                      • #12
                        Re: New face of public housing

                        Originally posted by Jam View Post
                        After a year of leasing, the government will offer the renters to buy the homes they live in at a significant discount from their original price. A perfect way to offload the property and ensure votes for the incumbents who 'fought for the little guy.' :rolleyes:
                        Obviously, the sale will be at a loss to government, but, hey, it is not their money anyway--it's ours.
                        "the original price" is likely well above current market value. "a significant discount" is likely required to bring the price to market value.

                        Comment


                        • #13
                          Re: New face of public housing

                          Originally posted by jk View Post
                          "the original price" is likely well above current market value. "a significant discount" is likely required to bring the price to market value.
                          Agreed--on both points. However, we will probably never know what is the market value as the properties will not see the market. Instead, they will be offered to the renters for a price set up by the bureaucracy--priced to model, so to speak.

                          Comment


                          • #14
                            Re: New face of public housing

                            Originally posted by Jay View Post
                            Do they fence them in?
                            Nah. In America they do the opposite.

                            The rich fence themselves in, the rest of us are free to move around...

                            Comment


                            • #15
                              Re: New face of public housing

                              Originally posted by GRG55 View Post
                              Nah. In America they do the opposite.

                              The rich fence themselves in, the rest of us are free to move around...

                              Joking - friendly

                              Doesn't Jay live in one of those in Florida? Maybe I'm confusing him with another person.

                              Comment

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