Beginning a new process to “help” the large quantity of foreclosure-status mortgage holders avoid losing their homes, Fannie Mae and Freddie Mac have decided that in lieu of these people losing their homes, they should have the option to turn their defunct-mortgage loans into rental agreements.
With the failing home market and the loans that are now due, the two mortgage moguls own more than 100,000 homes due to mortgage foreclosure. How to continue to make money without the trouble of having to resell the home in a still-weak economy? Why, allow the current mortgage-holders to become tenants, of course!
As a REALTOR® and tax payer, this new attempt to keep their heads above water with no consideration to the effects on the housing market, the economy or the country as a whole is frustrating. If they can manage this until the housing market levels out, they still have the ability to sell the property then.
This is yet another bad example of a business practice that is bound to backlash into the weakened economy and take a little more out of taxpayers’ pockets. These potential renters will be the same mortgage holders that, for one reason or another, were unable to pay their mortgages. They are now going to be potential tenants that will not pay their rent. How does this help anyone but Fannie Mae and Freddie Mac? It doesn’t.
Tags: defunct-mortgage loans, failing home market, housing market levels out, mortgage holders
