Dollars and Jens
Thursday, November 05, 2009
Making failed homeowners into renters again
Calculated Risk reports that
Fannie Mae (FNM/NYSE) is implementing the Deed for Leaseā„¢ Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.
This is good for all sides (or at least better than the likely alternatives), and with minimal if any longer-term moral hazard concerns. You spare the homeowner the cost of the move, you spare both sides the cost of the foreclosure, and you keep someone living in the unit instead of allowing it to go derelict. This is a very positive development.

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