Borrowers facing foreclosure get option to rent own homes

Can't pay the mortgage? You still might be able to stay in your home. Mortgage giant Fannie Mae is going to give borrowers on the verge of foreclosure the option of renting their homes.

The new "Deed for Lease" program will allow homeowners to transfer title to Fannie Mae and sign a one-year lease, with potential month-to-month extensions after that. It also helps save money because the lender does not need to complete the often lengthy and time-consuming foreclosure process.

The program "keeps families in their homes during a transitional period, and helps to stabilize neighborhoods and communities," said Jay Ryan, a Fannie Mae vice president.

Those who help homeowners, however, said the industry should push harder to lower monthly loan payments, because the preferred option is allowing people to retain ownership. AP