Digg This
Talk Back
Post a Comment
|
HousingZone Most Popular Stories
- Kitchen & Bath Trends for 2010
- 2009 Best in American Living Awards Reveal What's Ahead for Residential Design
- Record 2009 Foreclosures Despite Aid
- FinestExperts Ranks Top 2010 Real Estate Investment Markets
- 2010 Brings New Lows in Home Price Reduction Levels
- Short sales unlikely to harm housing market
- Earth Advantage Institute Selects Top 10 Green Building Trends For 2010
- U.S. Apartment Vacancy Rate Hits 30-Year High
- Remodelers' Exchange: Rental properties can be a road to success
- 100 Best New Products 2009
Fannie Mae Announces Deed for Lease Program
The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification
News Release
November 16, 2009
HousingZone
Washington, DC — Fannie Mae is implementing the Deed for Lease™ Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender. "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."
The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.
To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. 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.
Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.
For additional information about the Deed for Lease Program, including full details on program eligibility, please review the Guide Announcement on www.efanniemae.com.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers.Our job is to help those who house America.
© 2010, Reed Business Information, a division of Reed Elsevier Inc. All Rights Reserved.
