About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
Filed under Government Mortgage Financing Programs News

In some cases when a borrower can’t get a loan modification they can apply for a deed-for-lease program instead. In such programs, rather than face a traditional foreclosure the borrower turns home over to the bank and in return is allowed to remain in the home as a renter. Here are some details on the program from the Fannie Mae site:

What is Deed-for-Lease?

The Deed-For-Lease™ option is a program from Fannie Mae that allows you to lease your home after you have transferred the title to your property to the mortgage company (commonly called a Deed-in-Lieu of Foreclosure). The lease terms are up to 12 months (with the possibility to extend longer). And the monthly rent is based on the current rental rates for your area—not on your original mortgage payment.

Deed-for-Lease is an alternative to foreclosure and may be an option if:

* You are ineligible to refinance or modify your mortgage
* You are facing a long-term hardship
* You are several months behind on your mortgage payments
* You may owe more on your home than it’s worth
* You have not been able to sell your home
* You want to remain in your home and neighborhood

Important! If your loan is not owned by Fannie Mae, there may be a similar leasing option offered by your mortgage company. Always contact them to see what is available.

Comments (0) Posted by G.R.A. Admin on Monday, August 2nd, 2010

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