Fannie Mae Allows You To Lease Back Your Foreclosed Home

You can also rent it back.

At what price? Market price says Fannie Mae.

Lenders are doing everything they can to staunch the tide of foreclosures which threatens to overwhelm home values. The more foreclosures, the lower the real estate prices, which leads to more foreclosures. It's a vicious cycle.

The Los Angeles Times reports:

Mortgage giant Fannie Mae said Thursday that it would throw a lifeline to some people losing their homes to foreclosure by allowing them to lease those properties back for up to a year at market rental rates.

The move is the latest in a series of steps by lenders trying to manage inventories of foreclosed homes on their books in an attempt to keep a wave of properties from slamming a housing market that has shown some signs of recovery.

The news came as Fannie Mae reported a net loss of $18.9 billion in the third quarter ended Sept. 30, compared with a $14.8-billion loss in the second quarter and a $29.4-billion loss in the third quarter last year.