Fannie Mae to Become National Landlord? New Policy Allows Home Owners to Rent

sudler-sothebys-logo10 November 2009 –Fannie Mae is primed to become a landlord on a national scale. Last Thursday, Fannie Mae announced a new program that would allow current home owners in foreclosure to stay in their homes by signing a 1-year rental agreement. After the lease expires, homeowners could then enter a month-to-month lease. This would make Fannie Mae the largest property manager in the country. While this program may keep some foreclosed homeowners from going homeless, the policy may also depress local property values. The announcement comes on the heals of Fannie Mae asking the federal government for another $15 billion in bailout money. So, who do the tenants call when the heat goes out or when a water main bursts?

Email This Post To a Friend. Email This Post To a Friend.
, ,

About Katie Anderson

Katie Anderson is a respected and successful broker at Sudler Sotheby’s Realty as well as a certified appraiser. She specializes in representing clients who purchase and sell condominiums, town homes, single-family homes and income property in the Chicago land area. In her small amount time in the real estate game (she became an agent in 2003) she has assisted in excess of 400 deals and over $200 million in sales and continues to use her skills as a certified appraiser. Katie resides in Chicago’s Bucktown neighborhood with her loving husband and 4-year-old-daughter, where she spends much of her spare time with her family and friends. You can contact her at katie@thechicago77.com or at andersonbraack.com

View all posts by Katie Anderson

7 Responses to “Fannie Mae to Become National Landlord? New Policy Allows Home Owners to Rent”

  1. Rodger Parker Says:

    Hands down the dumbest thing I ever heard! They can’t afford the house what makes Fannie think they can afford to lease it now? What happens when they won’t pay rent if the magic rent fairy actually puts rent money in their pockets? Sounds like giving the guy on death row another year for being a bad prisoner. You just cant make this sh@#t up the government just cracks me up. Really???.. Really???..

    Here’s a thought…No pay no stay !!! Let’s foreclose, sell the properties, and move on instead of peeling the bandaid off slowly.At the end of the day you still have a gaping wound that isn’t going away.

  2. renah bell Says:

    Actually, I think it’s a brilliant idea. These people will continue to pay the mortgage down with their rentals and they will take care of the property. It is certainly better than leaving it to stand empty woth possibility of squatters and/or vandalism and it keeps another family from becoming homeless. Perhaps, after they’ve rented for a while their situation will improve and they will be able to buy the house back at a special rate.

  3. bill.h Says:

    Are you kidding me….I think its a great idea…distressed property owners get to stay in their homes and not walk away from their nest egg.

  4. Gene Says:

    Home value went down so much!! Why would you want to keep paying for a home that has negative value? Why not save the free rent money that the government is offering to live for free for another home?!! I vote nay on this!!

  5. Andy Says:

    This is a great idea. Sure agents don’t get a six percent commission but there will be plenty of properties to buy and sell. This keeps people in their homes. This isn’t the first time this has happened. If they ride this out long enough they may make money like they did last time they became landlords. No reason to do more tax payer funding of losses when they can literally rent out and and maintain the possibility of recouping them. Besides how does lowering the inventory of REOs in the market lower market prices? It seems to me that it would in fact protect market prices and help keep them higher.

Trackbacks/Pingbacks

  1. Fannie Mae Increasing Loan Requirements for Home Buyers | The Chicago 77 - December 1, 2009

    […] will reject any loan request where the buyer has less than 20% down and credit score under 620. Fannie Mae will also be changing its debt to income ratio to 45%. To the average buyer who does not have the […]

  2. Fannie Mae Announces New 3.5% Buyer Incentive | The Chicago 77 - February 2, 2010

    […] announced today that they are offering a 3.5% incentive* for buyers who purchase and close on a Fannie Mae-owned home between January 28th, 2010 and April 30, 2010. Buyers purchasing properties listed on their […]