Fannie Mae - your new Landlord (Landlady?)
Fannie Mae has decided to sign leases to keep renters in homes that are in foreclosure. From the NY Times article:
"It is the first nationwide effort to provide widespread relief to renters ensnared by the unfolding mortgage crisis, and it will effectively transform Fannie Mae — a government-controlled mortgage finance company — into a national landlord. It may also increase pressure on private lenders to establish similar programs and on lawmakers to pass renter relief."
So that's some good news, right? Unless you are one of those permabears (alstry) who believes that we are headed toward socialism. Then this story proves your point.
But as a renter myself I am glad to hear that there are options available for those of us who dutifully pay their rent on time but then get screwed over by some scumbag homeowner who does not pay the mortgage while continuing to collect rent.
Will this affect other banks? I have my doubts, unless they can charge additional fees to renters for "property management".