In a recent announcement Fannie Mae has agreed to mirror the 
Freddie Mac program to lease properties back to homeowners 
that are in foreclosure. This benefits consumers and it will help 
families get back on their feet until they are ready to finance their 
house once again. This is a proactive step to allow individuals 
and families to have the time that they need to regain control of 
their financial lives.. While the lease back program solves a large 
problem for the homeowner - A roof over their head - It does not 
address other credit problems that the consumer faces. Steven 
Stark, COO and General Counsel for A New Horizon Credit 
Counseling Services, Inc., a national credit counseling agency 
offered that "in order for the consumer to fully recover from his 
or her financial distress, leasing back the home that they formerly 
had owned is a wonderful first step. It prevents the homeowner 
from being displaced at great financial and emotional expense."

The underlying reason for these homeowners to be in default stems 
from a host of credit problems resulting in an unmanageable debt 
situation. Homeowners may be living outside of their means in 
addition to carrying too much credit card debt . Consequently, they 
are unable to pay their bills and, in turn, they default on their mortgage. 
This new program may help them get back on the right track financially.