Fannie Mae Allows Lease Back of Foreclosures
This is a proactive step to allow individuals and families to get back on their feet. While the lease back program solves a large problem for the homeowner - A roof over their head - It does not address other credit problems that the consumer faces. Steven Stark, COO and General Counsel for A New Horizon Credit Counseling Services, Inc., a national credit counseling agency offered that "in order for the consumer to fully recover from his or her financial distress, leasing back the home that they formerly had owned is a wonderful first step. It prevents the homeowner from being displaced at great financial and emotional expense."
The underlying reason for these homeowners to be in default stems from a host of credit problems resulting in an unmanageable debt situation. Homeowners may be living outside of their means in addition to carrying too much credit card debt. Consequently, they are unable to pay their bills and, in turn, they default on their mortgage. This new program may help them get back on the right track financially.
Individuals and families may enroll in a reputable Credit Counseling Services Program and get professional advice from certified credit counselors who will properly asses their financial needs. Firms who will take a candid and honest look at a realistic budget based on their situations and advise them what programs or services best fit their needs. In this way the lender, Fannie Mae and Freddie Mac, will now have afiscally educated renter who is now in control of their finances. This ultimately will lead to these renters becoming responsible candidates for home ownership in the future.
