I love Charleston!
FANNIE MAE announced Thursday it is going to give borrowers on the verge of foreclosure the option of renting their homes for a year.
The government-controlled Fannie Mae through its new DEED FOR LEASE program will allow qualified borrowers to transfer ownership to Fannie Mae and sign a one-year lease, with the option for month-to-month after that period.
The change could give a temporary break to thousands of homeowners. It also helps save money because the lender does not have to complete the foreclosure process on these homes.
Fannie Mae executives said the rental program is designed to help delinquent homeowners who don't qualify for a loan modification, but still want to stay in their homes.
To QUALIFY, homeowners have to live in the home as the primary residence and prove that they can afford the market rent, which will be established by the management company running the program. Rents will be based on the current market. Rent can also not exceed more than 31 percent of the homeowners pretax income.
I love Charleston!