Chris Thorman at SoftwareAdvice.com sent me his latest post this AM: Own to Rent: Breaking Down Fannie Mae’s Deed for Lease Program. That’s correct, the title reads "Own to Rent," not at all the rent to own scenario of which so many are already familiar.
The Federal National Mortgage Association, more commonly known as Fannie Mae, recently announced a new program designed to keep mortgage-challenged borrowers in their homes. The Deed for Lease (D4L) program allows qualified borrowers to relinquish the deed to their property and rent their home at the market rate for 12 months.
Chris’s breakdown of exactly how this program works is excellent and thorough. Imagine paying rent to your bank with no possibility of upside in equity after you once "owned" your home. Ugh!