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Fannie Mae Is Now a Huge Landlord

by admin on November 12, 2009

Fannie Mae has a new program called “Deed for Lease” where homeowners in foreclosure can stay in their homes as renters if they deed their houses over to Fannie Mae before the foreclosure auction. The program is only for owner-occupants; borrowers must pay market rents and meet income qualifications. (Rents cannot be more than 31% of their gross income.) The initial lease term is one year, then they become month-to-month rentals.

Fannie Mae has only done about 1200 Deed for Lease deals in the first six months of this year, compared to the 57,000 properties that it repossessed during the same period. (This “success” rate of about 2% may sound low, but it’s actually a lot higher than that of the Obama administration’s loan modification program.)

So it looks like Fannie Mae has all but given up on selling all the houses it is taking back in foreclosure, and has resigned itself to becoming America’s biggest landlord. This means more opportunities to buy Portland investment property at bargain prices!

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