Fannie Mae Implementing the Deed for Lease Program

[Huckleberry]

http://www.fanniemae.com/newsreleases/2009/4844.jhtml?p=Media&s=News+Releases

So, this will pull rents DOWN as a flood of new rentals hits the market. This program lowers rents to 31% of income, so instantly rents will fall to match incomes, and in doing so drag other rentals down with them. This is a HUGE WIN for renters, and a DISASTER for landlords.

But, given you can squat in a foreclosure for free for several years, why bother paying rent? Property taxes will not be paid, nor will upkeep. For condos, in particular, this seems like it will get messy, what about HOA fees? Is Fannie going to pay them?

As we all know, when rents come down, so do the prices of homes. If I can rent a nice place cheaper than I can own it, you bet I’m gonna rent!

Think about how this plays out…The only thing I’m sure of here is there will be a lot of unforeseen consequences.

[Sandiagon]

This approach will reduce inventory of available homes for sale on the market. I do not think this has any effect on existing rental market. Unemployment is the major reason to drive down rents in near future (next couple of years).

[Sandiagon]

This approach will reduce inventory of available homes for sale on the market. I do not think this has any effect on existing rental market. Unemployment is the major reason to drive down rents in near future (next couple of years).

[Sandiagon]

This approach will reduce inventory of available homes for sale on the market. I do not think this has any effect on existing rental market. Unemployment is the major reason to drive down rents in near future (next couple of years).

[Sandiagon]

This approach will reduce inventory of available homes for sale on the market. I do not think this has any effect on existing rental market. Unemployment is the major reason to drive down rents in near future (next couple of years).

[Sandiagon]

This approach will reduce inventory of available homes for sale on the market. I do not think this has any effect on existing rental market. Unemployment is the major reason to drive down rents in near future (next couple of years).

[scaredyclassic]

all the people in the homes are renters who aren’t renting rentals. so it seems like it has to increase the number of rentals avilable on the market, assuming the people staying in the homes would otherwise have rented rentals and not just lived in their vans or crashed at friends’ houses.

[scaredyclassic]

all the people in the homes are renters who aren’t renting rentals. so it seems like it has to increase the number of rentals avilable on the market, assuming the people staying in the homes would otherwise have rented rentals and not just lived in their vans or crashed at friends’ houses.

[scaredyclassic]

all the people in the homes are renters who aren’t renting rentals. so it seems like it has to increase the number of rentals avilable on the market, assuming the people staying in the homes would otherwise have rented rentals and not just lived in their vans or crashed at friends’ houses.

[scaredyclassic]

all the people in the homes are renters who aren’t renting rentals. so it seems like it has to increase the number of rentals avilable on the market, assuming the people staying in the homes would otherwise have rented rentals and not just lived in their vans or crashed at friends’ houses.

[scaredyclassic]

all the people in the homes are renters who aren’t renting rentals. so it seems like it has to increase the number of rentals avilable on the market, assuming the people staying in the homes would otherwise have rented rentals and not just lived in their vans or crashed at friends’ houses.

[analyst]

[quote=Huckleberry]http://www.fanniemae.com/newsreleases/2009/4844.jhtml?p=Media&s=News+Releases

This program lowers rents to 31% of income, so instantly rents will fall to match incomes, and in doing so drag other rentals down with them.[/quote]

The news release does not say that rents will be lowered to 31% of income. It says that, to qualify, the borrower-become-renter may not pay more than 31% of income to cover the newly established market rental rate.

The unanswered question is how market rental rate will be established for each property.

[analyst]

[quote=Huckleberry]http://www.fanniemae.com/newsreleases/2009/4844.jhtml?p=Media&s=News+Releases

This program lowers rents to 31% of income, so instantly rents will fall to match incomes, and in doing so drag other rentals down with them.[/quote]

The news release does not say that rents will be lowered to 31% of income. It says that, to qualify, the borrower-become-renter may not pay more than 31% of income to cover the newly established market rental rate.

The unanswered question is how market rental rate will be established for each property.

[analyst]

[quote=Huckleberry]http://www.fanniemae.com/newsreleases/2009/4844.jhtml?p=Media&s=News+Releases

This program lowers rents to 31% of income, so instantly rents will fall to match incomes, and in doing so drag other rentals down with them.[/quote]

The news release does not say that rents will be lowered to 31% of income. It says that, to qualify, the borrower-become-renter may not pay more than 31% of income to cover the newly established market rental rate.

The unanswered question is how market rental rate will be established for each property.

[analyst]

[quote=Huckleberry]http://www.fanniemae.com/newsreleases/2009/4844.jhtml?p=Media&s=News+Releases

This program lowers rents to 31% of income, so instantly rents will fall to match incomes, and in doing so drag other rentals down with them.[/quote]

The news release does not say that rents will be lowered to 31% of income. It says that, to qualify, the borrower-become-renter may not pay more than 31% of income to cover the newly established market rental rate.

The unanswered question is how market rental rate will be established for each property.

[Author]

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