"Fannie Mae Announces Deed for Lease(TM) Program
Thu Nov 5, 2009 10:02am EST
WASHINGTON, Nov. 5 /PRNewswire-FirstCall/ -- Fannie Mae (NYSE: FNM) is
implementing the Deed for Lease(TM) Program under which qualifying homeowners
facing foreclosure will be able to remain in their homes by signing a lease in
connection with the voluntary transfer of the property deed back to the
lender.
"The Deed for Lease Program provides an additional option for qualifying
homeowners who are facing foreclosure and are not eligible for modifications,"
said Jay Ryan, Vice President of Fannie Mae. "This new program helps 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."
The new program is designed for borrowers who do not qualify for or have not
been able to sustain other loan-workout solutions, such as a modification.
Under Deed for Lease, borrowers transfer their property to the lender by
completing a deed in lieu of foreclosure, and then lease back the house at a
market rate. ...."
http://www.reuters.com/article.....RN20091105
"Fannie Mae Announces Deed for Lease(TM) Program
Thu Nov 5, 2009 10:02am EST
WASHINGTON, Nov. 5 /PRNewswire-FirstCall/ -- Fannie Mae (NYSE: FNM) is
implementing the Deed for Lease(TM) Program under which qualifying homeowners
facing foreclosure will be able to remain in their homes by signing a lease in
connection with the voluntary transfer of the property deed back to the
lender.
"The Deed for Lease Program provides an additional option for qualifying
homeowners who are facing foreclosure and are not eligible for modifications,"
said Jay Ryan, Vice President of Fannie Mae. "This new program helps 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."
The new program is designed for borrowers who do not qualify for or have not
been able to sustain other loan-workout solutions, such as a modification.
Under Deed for Lease, borrowers transfer their property to the lender by
completing a deed in lieu of foreclosure, and then lease back the house at a
market rate. ...."
http://www.reuters.com/article.....RN20091105
So what they are saying is the Fed is going to take a 100% hit on these millions of properties and NOT try to sell them and recover the money they have invested in MBSs?
The are planning on essentially buying millions of homes and turning them into "Government Housing" all paid for by the taxpayers?
That takes the banks off the hook for 100 cents on the dollar doesnt it?
Who the h**l thought up this cluster *f* of an idea?
"Fannie Mae Announces Deed for Lease(TM) Program
Thu Nov 5, 2009 10:02am EST
WASHINGTON, Nov. 5 /PRNewswire-FirstCall/ -- Fannie Mae (NYSE: FNM) is
implementing the Deed for Lease(TM) Program under which qualifying homeowners
facing foreclosure will be able to remain in their homes by signing a lease in
connection with the voluntary transfer of the property deed back to the
lender.
"The Deed for Lease Program provides an additional option for qualifying
homeowners who are facing foreclosure and are not eligible for modifications,"
said Jay Ryan, Vice President of Fannie Mae. "This new program helps 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."
The new program is designed for borrowers who do not qualify for or have not
been able to sustain other loan-workout solutions, such as a modification.
Under Deed for Lease, borrowers transfer their property to the lender by
completing a deed in lieu of foreclosure, and then lease back the house at a
market rate. ...."
http://www.reuters.com/article.....RN20091105
So what they are saying is the Fed is going to take a 100% hit on these millions of properties and NOT try to sell them and recover the money they have invested in MBSs?
The are planning on essentially buying millions of homes and turning them into "Government Housing" all paid for by the taxpayers?
That takes the banks off the hook for 100 cents on the dollar doesnt it?
Who the h**l thought up this cluster *f* of an idea?
OMG
RENT TO OWN BUTTS IN HOUSES RENT TO OWN BUTTS IN HOUSES RENT TO OWN BUTTS IN HOUSES........KNEW IT WAS COMING..........
Freddie is already trying it. My question is this: They have to have not qualified for a mod. However, the rent has to be no more than 31% of their income. Is that not the same qual as a mod?
StephenF Nitroglycerin
Joined: 08 Dec 2007
Posts: 613
Location: New Jersey
So my house was valued at $800,000, currently the value is approximately $400,000...we owe $625,000 and paying around $3800 for the mortgage and $1100 for the taxes. The taxes have doubled the last 5 years from $5500 to $12,500 Annually. Current market rent in my neighborhood is between $2,000-$2200 for the same type of property. I'm barely getting by as it is, the tax increases have really killed me. The only reason we want to stay is due to the school district and just the sentimental value. Besides that we are flushing our money down the toilet. I'm all in, if I can stay in my home for half the monthly expense and not deal with increasing expenses I'm all in. Where do I sign?
So my house was valued at $800,000, currently the value is approximately $400,000...we owe $625,000 and paying around $3800 for the mortgage and $1100 for the taxes. The taxes have doubled the last 5 years from $5500 to $12,500 Annually. Current market rent in my neighborhood is between $2,000-$2200 for the same type of property. I'm barely getting by as it is, the tax increases have really killed me. The only reason we want to stay is due to the school district and just the sentimental value. Besides that we are flushing our money down the toilet. I'm all in, if I can stay in my home for half the monthly expense and not deal with increasing expenses I'm all in. Where do I sign?
Hey, you can live rent free for 6-12 months before you hand over your deed and Fannie will even pay your property taxes, fix the roof and the leaky faucet too. Your tenant insurance will only be a fraction of what Fannie has to pay for homeowners insurance.
What a great deal for anyone who is upside down. If you rent for a few years you might be able to buy back in with 3.5% down FHA and get the place back for 50% in the future when Fannie cant sell it.
Wonder if Fannie will have restrictions about smoking in the house or charge pet deposits? lol
Snets Dyn-o-mite!
Joined: 12 Nov 2008
Posts: 329
Location: Palm Beach County
What about the credit score requirement to the new licensing? They haven't announced what criteria they are going to use but credit reports are part of the application.
cobalt360 Nitroglycerin
Joined: 06 Aug 2007
Posts: 691
Location: East Coast
"Fannie Mae Announces Deed for Lease(TM) Program
Thu Nov 5, 2009 10:02am EST
WASHINGTON, Nov. 5 /PRNewswire-FirstCall/ -- Fannie Mae (NYSE: FNM) is
implementing the Deed for Lease(TM) Program under which qualifying homeowners
facing foreclosure will be able to remain in their homes by signing a lease in
connection with the voluntary transfer of the property deed back to the
lender.
"The Deed for Lease Program provides an additional option for qualifying
homeowners who are facing foreclosure and are not eligible for modifications,"
said Jay Ryan, Vice President of Fannie Mae. "This new program helps 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."
The new program is designed for borrowers who do not qualify for or have not
been able to sustain other loan-workout solutions, such as a modification.
Under Deed for Lease, borrowers transfer their property to the lender by
completing a deed in lieu of foreclosure, and then lease back the house at a
market rate. ...."
http://www.reuters.com/article.....RN20091105
So what they are saying is the Fed is going to take a 100% hit on these millions of properties and NOT try to sell them and recover the money they have invested in MBSs?
The are planning on essentially buying millions of homes and turning them into "Government Housing" all paid for by the taxpayers?
That takes the banks off the hook for 100 cents on the dollar doesnt it?
Who the h**l thought up this cluster *f* of an idea?
OMG
RENT TO OWN BUTTS IN HOUSES RENT TO OWN BUTTS IN HOUSES RENT TO OWN BUTTS IN HOUSES........KNEW IT WAS COMING..........
too funny ! first thing I thought when I saw this was "Catherine was right ! "
_________________ Philippians 4:6 Do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God.
Freddie is already trying it. My question is this: They have to have not qualified for a mod. However, the rent has to be no more than 31% of their income. Is that not the same qual as a mod?
No, they base the rents they'll charge on local market fair value, not income. If they did it based on income and the people couldn't afford to own a home with the loan mod program than they couldn't afford to rent there either, which would be pointless...
Supposedly they'll "only" allow renting for a year, they can always extend that though. Look at what they're doing with the 1st time home owner tax credit for instance.
Oregonguy wrote:
So what they are saying is the Fed is going to take a 100% hit on these millions of properties and NOT try to sell them and recover the money they have invested in MBSs?
We'll see what happens in a year. My WAG is they're going to extend the renting period off into defacto perpetuity, or at least try to anyways. If so then what you're saying will become true, if they actually try to liquidate the homes like they say will in a year, than no they'll just have delayed the loss taking by a year.
Not that its going to work, at least as far as propping up the housing market anyways. Prices will still drop, but due to this and other "extend and pretend" tactics its going to take much longer. I was guessing 2015 as a bottom date, that may be optimistic now.
Oregonguy wrote:
Who the h**l thought up this cluster *f* of an idea?
They're (gov/execs) getting desperate, desperation breeds stupidity, so prepare to see more stuff like this as things get worse and worse. Watch the bond markets in particular, we may be in for a Sudden Stop.
"Keep in mind that the stages of the process are non-linear, and apply differently to a major economy like the US, with its debts denominated in its own currency and most of it long not short term, compared to the Korean and other cases mentioned.
Steps can revert from one back to another and forth again, for example between pre-flight and preparation phases. However, these processes tend to escalate in a positive feedback loop of crisis and response.
At this point it is not clear to me how the US avoids either capital controls to avoid a Sudden Stop or takes the full capital flight trip and experiences a Sudden Stop.
Most economists reading will be taken aback by the suggestion that the US might be the victim of capital flight and a Sudden Stop. The US has long been the recipient and beneficiary of flight capital as other nations experienced financial crisis. But a world ordered by poor nations financing the rich with their "excess savings" is an environment where long standing beliefs can be turned upside down, and fast. It remains to be seen what happens to the euro as the financial crisis spreads to Europe. The dollar, at least temporarily, may benefit.
The US has averted a "Poom" event so far because foreign central banks stepped in to support our housing and treasury market in 2003. But the financial and economic crisis is intensifying; counting on foreign governments to support the US throughout is an invitation to disaster. One of these days one of our creditors, not all of whom get along with each other, may force the US to make an impossible decision between a political ally and high interest rates. If that were to happen against the current background of global financial crisis, longstanding imbalances between the US and the rest of the world may re-balance in a hurry."
catherine wrote:
RENT TO OWN BUTTS IN HOUSES RENT TO OWN BUTTS IN HOUSES RENT TO OWN BUTTS IN HOUSES........KNEW IT WAS COMING..........
Yep, you called it. I'm still half amazed they're trying this, they have to know that it can't work, only delay the inevitable (Fan/Fred bankruptcy/breakup + further drastic home price declines, maybe even a bond crisis/sudden stop if they keep trying to bail out Fan/Fred + prop up the home prices) for a few years at best.
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