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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