{"id":10228,"date":"2009-11-06T23:03:21","date_gmt":"2009-11-07T06:03:21","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=10228"},"modified":"2009-11-06T23:03:21","modified_gmt":"2009-11-07T06:03:21","slug":"the-deeds-for-lease-program-coming-soon-to-a-slum-near-you-also-coming-soon-the-slum","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10228\/the-deeds-for-lease-program-coming-soon-to-a-slum-near-you-also-coming-soon-the-slum\/","title":{"rendered":"The Deeds for Lease Program Coming Soon to a Slum Near You (Also Coming Soon: the Slum)"},"content":{"rendered":"

Fannie Mae announced today it’s implementation of the Deeds for Lease Program<\/a> (which name, interestingly, they have trademarked). I cannot begin to count the problems with this latest attempt by the government to sober up an alcoholic nation by supplying enough booze to drown a water hippo.<\/p>\n

You can read the press release and imagine the nightmare yourself so I’m not going to recount it here, but I will point out one of the less reported aspects of this program that has the potential to cause a whole lot of those pesky unintended consequences<\/em> our political leaders are so loathe to anticipate:<\/p>\n

… (the borrowers or tenants) lease back the house at a market rate… Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.<\/p><\/blockquote>\n

Interesting wording there at the end.\u00a0 It’s not clear at first glance, but what this means is that if the borrower – who has generally endured a financial hardship to begin with – doesn’t make enough money, they’re still eligible… the rent will just have to drop to below market<\/strong>.\u00a0 Well what could go wrong with a government\/landlord artificially lowering rents throughout the nation… That shouldn’t bother anyone who works with real estate investors should it?\u00a0 Anyone here, reading BHB, work with real estate investors?\u00a0 I didn’t think so.\u00a0 Sorry to have brought it up.\u00a0 I’m sure the people who paid $70,000 for $30,000 trailers that are STILL housing people post Katrina know exactly what they’re doing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Fannie Mae announced today it’s implementation of the Deeds for Lease Program (which name, interestingly, they have trademarked). I cannot begin to count the problems with this latest attempt by the government to sober up an alcoholic nation by supplying enough booze to drown a water hippo. You can read the press release and imagine […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[251],"tags":[418],"class_list":{"0":"post-10228","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-big-mother","7":"tag-deeds-for-lease","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":905,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/905\/shackpricescom-anything-but-ordinary\/","url_meta":{"origin":10228,"position":0},"title":"ShackPrices.com: Anything but ORdinary . . .","author":"Greg Swann","date":"January 16, 2007","format":false,"excerpt":"Responding to my kvetching last night, ShackPrices.com today launched itself into a new ORbit among map-based real estate search pORtals -- with OR without MLS access. Not satisfied with ORdinary searching, the Seattle-based company yesterday added a loosely-structure keywORd search. The search suppORted the AND and NOT logical operatORs, but\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7532,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7532\/put-down-the-pipe-and-step-away-from-that-lease-agreement\/","url_meta":{"origin":10228,"position":1},"title":"Put Down The Pipe – And Step Away From That Lease Agreement","author":"Doug Quance","date":"March 20, 2009","format":false,"excerpt":"Yesterday's Unrealistic Sellers Are Today's Unrealistic Landlords Just when we thought we had finally convinced all potential sellers that the real estate market was in a crisis - and that realistic pricing was the only way that a sale could be consummated - we now must deal with the unrealistic\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":255,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/255\/gregs-toothsome-lease-addendum\/","url_meta":{"origin":10228,"position":2},"title":"Greg’s toothsome lease addendum . . .","author":"Greg Swann","date":"August 26, 2006","format":false,"excerpt":"I was out with investors today, and I mentioned this model lease addendum to them. I wrote this two summers ago. It is devised to permit out-of-state or arm's-length landlords to get along without a property manager, if they choose. Take note that this a model, an example for education\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2512,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2512\/tuition-is-expensive-at-the-school-of-hard-knocks\/","url_meta":{"origin":10228,"position":3},"title":"Tuition Is Expensive At The School Of Hard Knocks","author":"Doug Quance","date":"January 18, 2008","format":false,"excerpt":"Another Episode Of \"It Doesn't Pay To Be A Cheap Bastard\" In times like these, real estate investors often search for the corners to be cut. While many of the corners should be cut - others should not. Such is the case of adequate insurance. Many sellers are having to\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":470,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/470\/blogoff-post-93-a-few-tips-on-avoiding-unexpected-fees-penalties-on-rental-homes\/","url_meta":{"origin":10228,"position":4},"title":"Blogoff Post #93: A few tips on avoiding unexpected fees, penalties on rental homes . . .","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"This is from my Arizona Republic column:With regard to my recent advice to a young landlord, a reader phoned to leave this sage counsel: Don't forget about the rental tax. The worst way to find out about unpaid taxes is by getting a bill for three years' worth of arrears.\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7472,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7472\/show-me-yours-then-ill-show-you-mine\/","url_meta":{"origin":10228,"position":5},"title":"Show Me Yours – Then I’ll Show You Mine","author":"Doug Quance","date":"March 13, 2009","format":false,"excerpt":"Looking At Rental Properties With A Whole Different Perspective The more things change... well, the more they change. 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