Now this is smart! Allow homeowners and renters to stay after foreclosure

We all know the devastating effects of foreclosure and Freddie Mac has come up with a plan to lessen the effects. Just today, they announced a brilliant plan to stop homeowners and renters from being faced with the horrific event of being evicted from a home that has been foreclosed on. It's not an across the board blanket of approval for the homeowners and renters as they do have to qualify. However, for the many that will qualify this gives them an opportunity to go month to month until they find a new home.

How do homeowners and renters qualify?

• They must show proof that they have the income to pay the rent. I can imagine that they will look at bank statements, paystubs and a financial statement that shows income and expenses.

What are the terms of leasing?

• The leasing will be on a month to month basis
• Freddie Mac will hire a property management company to determin fair market value of rental rates that homeowners and tenants will pay.

Will this have any effects on the neighborhood?

• Sure it will. More homes will stay occupied in hopes of being maintained opposed to being left vacant and vandalized, perhaps. This is better news for the neighborhood.

I never understood why Lenders didn't previously offer this alternative as it has always made sense. It's nice to see that Freddic Mac has made the decision to lend a hand.

After all, this just seems like the right thing to do.