Fannie Mae has announced a new program ostensibly designed to “stem the tide of foreclosures” but actually encourages more foreclosures and seems likely to harm the ability of individual investors to participate in the foreclosure marketplace:
Last Thursday Fannie Mae announced their new “Deed For Lease” program, through which home owners facing foreclosure can deed their property to Fannie Mae in exchange for a 1-year lease (with likely extensions) at current market rates. This program is expected to only be available to those who have tried and failed at other solutions such as loan modifications or other loan work-out solutions.
Fannie Mae is an extension of the U.S. Government, therefore what’s actually happening here is that the government is dramatically expanding its role as an owner of private residences. Is this going to be a continued trend? And is this even legal, or reasonable?
Jesus Yinh believes this is not good for real estate investors, and believes that the federal government should have an extremely limited role in our lives, and that’s particularly true when it comes to ownership of homes.
The fact of the matter is that the federal government tends to use its financial assets and capabilities as vote-buying leverage. That’s what welfare is. That’s what Social Security & Medicare are. That’s what the new health care legislation will become as well.
And the new Deed for Lease program will be just another pawn used by whatever administration is in power.
What do we need to do then? Well for starters join the Short Sale Wealth Builder Institute here in California, so that we can help navigate you through the short sale process.
Jeff Coga, said “he knows there is a need for short sale investors here in California to do the business correctly, and that is what the Short Sale Wealth Builders is all about. We do the business with all CAR forms that Realtors are accustomed to. This organization is going to help people before the foreclosure ever happens.”
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