I am re-blogging this one, good information for homeowners that are not ready to just up and move out and don't mind renting from their own property ----> well, it won't be their property anymore once they sign over their deed! But you will have roof over your head that you are paying rent on. This is another band-aide but it may help some homeowners, so its worth educating the consumers of this option. see my post Click here to read: Deed for Lease Program: Helping you avoid foreclosure. Fannie Mae adds another avenue/option forhomeowners.
Will this BAND-AIDE work for Homeowners that can't afford to pay their mortgage?
If it helps at least a few.... its working!
Thanks, Dave.
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Via
Dave Sutton (Windermere Walnut Creek):
As an alternative to outright foreclosure, last week Fannie Mae announced a "Deed-for-Lease Proram (D4L). Here's the description from their announcement press release:
"D4L allows qualifying borrowers of properties transferred through deed-in-lieu of foreclosure (DIL) to remain in their home and community by executing a lease of up to 12 months in conjunction with a DIL. Investment properties that are tenant-occupied may also be considered as long as the borrower is cooperative in providing information from the tenant to facilitate the D4L."
Deed-in-lieu of foreclosure (DIL) in short means that the owner gives the title to the home to the lender without going through either a short sale or foreclosure process. It also has a smaller impact on the borrower's credit rating than a foreclosure.
The press release has more details, at
http://www.efanniemae.com./sf/guides/ssg/annltrs/pdf/2009/0933.pdf
There is more information, including a link to an FAQ pdf at
http://www.efanniemae.com./sf/servicing/d4l/
;)
;)
I think it's a good idea..but a better idea would be to let them modify to the payment of the rent.. :)