Assist2Sell

Fannie Mae has quietly announced a deed for lease program that enables homeowners who are in financial trouble and face foreclosure to turn into tenants by leasing the property from Fannie Mae and turning the property deed over to the lender, basically giving the house back.

According to Fannie Mae anybody who is not eligible for loan modification can take advantage of this program. It will keep families 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. With the deed for lease program, borrowers transfer their property to the lender by way of 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 (2nd mortgages, equity lines of credit) 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 qualify and 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 sold includes an assignment of the lease to the buyer.

You can download full details and instructions here. Fannie_Deed_For_Lease.pdf