So, I am not a big believer in throwing good money after bad, E for effort, giving someone a second chance to get away with it again or rewarding people that tried to screw the system. Yeah, that harsh- especially on the last one.

I do believe the Fannie and Freddie are doing the right thing by allowing people, who lost their houses in foreclosure, to remain as renters. I also think it is great that people can continue renting the house if their Landlord fell into foreclosure and lost the house. The many reasons behind this are to keep the communities from looking like “burn-outs in the Bronx”, to avoid empty homes falling prey to vandals and neighborhoods from becoming scary places for those that do pay their bills. Thus, it is truly not for the benefit of the ex-homeowner, so why would they care? They might not pay the rent either!

A few of the finer points that scare me:

• The lease is month to month. So, there is no liability or responsibility to stay, keep the place in good shape or notify the landlord that they are leaving.
• The rent will be “fair market value”. So, they get a discount from the mortgage payment? Who pays the taxes? Do they need renter’s insurance?
• Who is in charge and does the government really have the manpower to deal with this? Will this just be another avenue for sharks and shysters to pop up all over the place as government back management companies?
• Tenants must show proof that they can pay the rent. Well, they couldn’t pay the mortgage last month….

Freddie does make home possible! mmmmm

Dale Siegel