Rent Your Home Instead Of Getting Foreclosed

If you can't get a mortgage modification, if you can't meet your mortgage payments, but you don't want to move out of your home, you might be in luck if your mortgage is with Fannie Mae.

Here's the latest scheme to reduce foreclosures which are depressing home prices and leading to more foreclosures.

The Los Angeles Times says:

Mortgage titan Fannie Mae said it will begin allowing homeowners facing foreclosure to rent back their homes for up to one year in a move aimed at keeping a stack of foreclosures on its books from hitting the market, which is just beginning to show signs of recovery.

The new program is meant for troubled borrowers who don't qualify for or haven't been able to get a loan work-out, such as a modification, according to Fannie's news release.

Under the Deed for Lease program, the borrower would transfer title to the property to the lender by completing a deed in lieu of foreclosure and then rent back the house at market rates — which in many markets have fallen over the last year and probably would be cheaper than a mortgage payment on a loan made during the boom years.