Get no-obligation free mortgage quotes

Compare Mortgage Quotes

Call at 888-485-7561
and get current mortgage rates from a lender.

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Borrowers facing foreclosure can now lease back their homes

Shared by Sara on Mon Nov 09, 2009 4:16 am
In its effort to avoid foreclosures, Fannie Mae will now allow some borrowers to lease back their properties when they are facing foreclosure. Borrowers will now be allowed to lease back their homes for one year at current rental rates. This program will be known as a Deed for Lease Program. It has been noted that this program will in turn give a boost to the efforts of the federal government to stimulate the housing market. Source: http://www.latimes.com/business/la-fi-fannie6-2009nov06,0,4259740.story?track=rss

Community Members Opinion

savior70

Joined: 25 Mar 2009

Posts: 1895
Location: Florida

261.84 Dollars($)

Posted: Mon Nov 09, 2009 5:33 am Post subject:

Hi, It is indeed good news for many homeowners who do not want to lose their homes to foreclosure. It will be a huge relief for them as they would not be required to vacate their homes. The current rental rates aren't as high as monthly mortgage payments. Hence, the homeowners will be able to save some amount of money each month to utilize in future. In order to qualify for the Deed for Lease Program, the borrower needs to meet certain criteria: 1. The borrower must have exhausted all loss mitigation options like loan modification etc. 2. The property must be a primary residence. 3. The borrower must be ready to convey all his property interest to the lender. 4. The borrower will also be required to show documents to prove that the current rental rate will not exceed 31% of his gross income.

Samantha

Joined: 16 Sep 2005

Community Mentor
Posts: 1609
Location: MASSACHUSETTS

150.97 Dollars($)

Posted: Thu Nov 12, 2009 5:10 am Post subject:

Well, it seems that Fannie Mae and its approved lenders are trying to make an attempt towards minimizing the number of foreclosures that are likely to hit the market shortly. Hopefully it can prevent the housing market from losing the signs of recovery that it has shown till date. However, the Deed-for-Lease Program will be available to those borrowers who haven't qualified for other options such as loan modification. Under this program, qualified borrowers who've transferred their properties to lenders through deed in lieu will be allowed to execute a lease agreement apart from the DIL and thus remain in their homes for a year. _________________ Know how to compare lenders with mortgage booklet


Page 1 of 1

Highlights

Bookmark this page

Share |

MortgageFit on Twitter

Followers (265)

Mortgage on Facebook