Dennis Norman
If you are a homeowner facing losing your home in foreclosure but you do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification, you may have another alternative: The Deed for Lease program announced yesterday by Fannie Mae for homeowners with loans insured by Fannie Mae.
“The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications,” said Jay Ryan, Vice President of Fannie Mae. “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.”
Basically, the way the program works is, if you qualify, you deed your house back to your lender and at the same time execute a lease on the property. This way, even though you no longer have ownership of your home, you may continue to live there and not have to move somewhere else.
This program is in effect now but there is not a lot of information available on it. If you are in a situation where this program sounds attractive to you and you think your loan is owned or insured by Fannie Mae call your lender and ask if you are eligible for Fannie Maes deed for Lease Program.
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