Thursday, January 29, 2009
It may now be possible to lose one's home to foreclosure and remain in residence as a renter. From the Associated Press today:
Mortgage finance company Freddie Mac said it will allow some borrowers to rent out their homes after losing them to foreclosure.
The goal of the new policy, announced Friday, is to prevent properties from becoming vacant so they won't fall into disrepair.
Freddie Mac also said it will allow renters to remain in their homes even if their landlord enters foreclosure. The McLean, Va.-based company currently has about 8,500 properties in the foreclosure process, but many of those are vacant.
"Keeping foreclosed properties occupied and in better repair will support local property values and promote a faster recovery in the housing market," said Freddie Mac Chief Executive David Moffett.
As many California communities have discovered, foreclosures can be a blight on neighborhoods.
Under Freddie Mac's new policy, tenants and former property owners need to demonstrate that they have enough income to pay the rental bill. Freddie Mac also said it would consider reinstating a mortgage for those borrowers who can qualify for a modified loan.
Also of note:
Both Fannie Mae and Freddie Mac also said today they would extend a previously announced suspension of evictions through the end of February. Fannie and Freddie combined own or guarantee about half of the $10.6 trillion in outstanding U.S. home loan debt.
It will be interesting to see how this plays out and how quickly. I'd love to hear from anyone who ends up renting back their former residence.
-- Lauren Beale
Labels: From owner to renter, in the same house
posted by We buy houses, Stop foreclosure
@ 9:56 PM
permanent link | Post a Comment
|
0 Comments:
Post a Comment
<< Home