Homeowners Facing Foreclosure Get Chance To Rent
Fannie Mae has announced a new program designed to help homeowners who are facing foreclosure.
The government-controlled company is giving homeowners at risk of foreclosure the option of renting their homes.
Homeowners who are interested would have to transfer ownership of their homes to Fannie and sign a one-year lease. But to qualify, homeowners must be able to prove that they can afford market rent that can’t be more than 31 percent of their pre-tax income.
The new effort will be of little comfort to roughly 760 homeowners in Massachusetts who were foreclosed on by Fannie Mae since the beginning of this year, according to The Warren Group.
Still, it could help people who desperately want to remain in their homes and avoid the harm a foreclosure would cause to their credit records.