Job market is not supporting the recovery
There are many homeowners who are now behind in their mortgage payments and on the verge of foreclosure.¬† Fannie Mae, the government controlled mortgage company has a new plan that will offer those borrowers who are facing foreclosure the option of renting their homes for a year.¬† The new program is called “Deed for Lease” and on the surface I think it sounds better then it really is.
Now I understand what the thought behind this new policy is.  If someone is on the verge of foreclosure, allow them to rent the home back after signing the deed over. This will eliminate the need and the expense of going through foreclosure and it will allow the one time homeowner to remain in the property for a year.  Another thought behind this program is that it will stabilize neighborhoods and keep families together, on the surface it sounds great.
Fannie Mae is in trouble, again.  I read just a couple of days ago where she is asking for additional government money in order to survive for a while longer.  If this mortgage giant is again in financial trouble and asking for more of our money, then I would have to ask if this was a good plan or is this setting the stage for a huge downfall in the near future?  If this were a privately run company they would be on the verge of bankruptcy and failing.
There is only one thing that is going to stabilize the real estate industry, jobs.¬† Until we see the business sector rebound and jobs being offered our economy will continue to falter.¬† No amount of government programs will accomplish what a healthy, self sustaining economy can do.¬† I applaud Fannie Mae for their efforts, but I don’t see this as an answer to her problems, or the problems we as a nation are facing.¬† There needs to be programs for small businesses and new start up businesses, that’s when we will began to see a rebounding economy.¬† Jobs and paychecks are the answer, not government bailouts.
To find out whether your home loan is owned by Fannie Mae or Freddie Mac, try these Web sites:

Fannie Mae or Freddie Mac.
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