Deed for Lease Guide

Fannie Mae announced they have a new program called “Lease for Deed Program.”  Fannie Mae is the Federal National Mortgage Association.  Fannie Mae is a GSE,  Government Sponsored Enterprise. Fannie Mae is a privately company owned by the shareholders and for the shareholders benefit. It is protected financially by the support of the Federal Government.  The protections are an access to a line of credit from the U.S. Treasury, exemption from state and local taxes, and are exempt from SEC filings. Fannie Mae was created as a government agency by Franklin Roosevelt during the Great Depression as part of the “New Deal” program.  In 1968 Fannie Mae was privatized and made into a GSE.

Jay Ryan, Vice President of Fannie Mae said, "The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for loan modification, short sale, or mortgage refinance. 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."

This program is designed for people in foreclosure that have been able to get other loan-workout solutions. If the home owner qualifies, Fannie Mae will require a “Deed in Lieu of Foreclosure” and give the home owner a residential lease on the home at current local market prices. This will allow anyone that qualifies and is about to be foreclosed to stay in their home as a lease for up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. The Deed for Lease property that is subsequently sold will include an assignment of the lease to the buyer. To qualify for this program, the Home owner must have lived in the house as their primary residence and not have any other loans on the house. Borrowers desiring a lease must be able to document that the new market rental rate is no more than 31% of their gross income.

This official announcement and other news may be found in the news section at the bottom of this Hub.

I hope you found this article interesting and informative. Please feel free to leave your comments and share your own opinions and comments plus give your thumbs vote. Send me a email if you have a request on a topic of interest. It’s FREE to join my Fan club, subscribe by Email, my RSS Feed or join me on Hubpages with a click of your mouse.

Join Hubpages and Make Money Click Here