Deed For Lease Program

November 5, 2009 by  
Filed under Blog, Deed For Lease Program

Deed For Lease Program

So what’s the fuss?  Fannie Mae is letting homeowners stay in their homes and rent them for up to one year. This will help stop a copious amount of foreclosures.  The deed for lease program is offering borrowers who were unable to qualify for a modification or any other workout plan, to deed their property to the lender while still allowing them to live in the property as a lease.  Generally speaking the deed for lease will be a lower payment than their actual mortgage payment.  Borrowers will pay market rent and have the ability to stay in the property.

This is beneficial to the borrower for saving the time and energy of moving out of their home, and helps the banks keep people in their homes in hopes for values to rise over the next year.   We are still uncertain of how many homeowners Fannie Mae is willing to offer the Deed to Lease program, but nonetheless it will sure help out a good amount of homeowners.

This program will not be offered to homeowners who have not been behind on any payments.  It is evident that Fannie Mae would love to hold on and sell these properties at a higher value.  I’m sure that the deed to lease program is inspired by Freddie Mac, who was offering their clients month to month leases to people who had lost their homes in foreclosure.

Housing Assist Coldwellbanker