Washington, Nov 6 (THAINDIAN NEWS) Government controlled U.S. mortgage finance company Fannie Mae announced on Thursday about their unique rental program which is aimed at helping homeowners who can’t pay back their loans. The program aims at turning struggling homeowners into renters in their own homes.

The last-ditch program, is being called as Deed for Lease, and is specially designed for struggling borrowers who are facing foreclosure and have been unable to get a modification or refinance on their existing loan so far.

In this scheme, the homeowners will live in their own house after they can prove that even though they can’t afford to pay back the loan, they have the capability to pay the market rent. The market rent will be established by the management company, which is running the program. And the rents will not be subsidized, and is instead based on current market rates.

To qualify, homeowners have to live in the home as their primary residence and prove they can afford the market rent, which will

“This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period and helps to stabilize neighborhoods and communities,” said Jay Ryan, vice president at Fannie Mae.

“The Deed for Lease Program will keep the homes occupied rather than being an eyesore and a potential safety hazard,” Baker said.

“About 937,840 households received notices of default, forced auction or foreclosure in the latest quarter”, according to foreclosure information firm RealtyTrac.