Fannie to Rent to Owners in Foreclosure
Fannie Mae will allow homeowners facing foreclosure to stay in their homes and rent them for as long as a year, as part of the government's latest effort to help troubled borrowers, while keeping more foreclosed properties from hitting the housing market.
The "Deed for Lease" Program lets borrowers who don't qualify for loan modifications transfer their property to Fannie Mae in exchange for a lease. Borrowers-turned-tenants will pay market rents, which in most cases are lower than the cost of mortgage payments, and might be offered extensions when their leases expire.....
......Separately, Fannie Mae said Thursday it would need an additional $15 billion from the U.S. Treasury after it posted an $18.9 billion net loss for the third quarter, as loans made to prime borrowers deteriorated at a faster clip. That infusion would bring the total cost so far of Fannie's bailout to $61 billion.....
