Freddie Mac is expected to announce a plan that will allow homeowners and tenants to remain in homes in foreclosure by renting them back, USA Today reports.
The paper reports that Freddie Mac officials estimate the program could help as many as 8,600 families this year. Freddie Mac will provide leases on a month-by-month basis, provided that the tenants and homeowners are able to prove they have enough income to pay the rental amount (which would be decided by market value or existing lease rents).
The program gives homeowners and renters more time to find a new place to live and also keeps homes occupied. That's a plus for neighborhoods where numerous foreclosures have led to empty, unmaintained, vandalized properties.
‘For tenants, it's a big difference,’ Moody's Economy.com economist Mark Zandi told USA Today. ‘If this acts as a benchmark for other mortgage servicers, it would be a very positive development. It's a win-win. ‘
SOURCE: USA Today