Fannie Mae Deed for Lease Program (D4L)
I know there are quite a few of you out there going through tough times, even facing foreclosure of your home...
Fannie Mae is now offering another option to individuals that are facing the possibility of losing their home. The Deed for Lease (D4L) program appears to be similar to leasing a car. You will return your property to the bank via a deed-in-lieu of foreclosure at which point a 12 month lease could be issued to you allowing you to stay in the home. Here are key points of information that you need to know:
- Your credit will be affected because you are still executing a deed-in-lieu
- The amount you pay per month is to be based on fair market rent values not to exceed 31% of your income. If you have no income, you are not eligible
- Investment properties with tenants may qualify for this program
- The loan cannot be insured by a federal agency (FHA, VA, HUD, Rural Development)
- You cannot be more than 12 payments past due on your loan
- You cannot be involved in an active bankruptcy proceeding or subject to litigation
- After the initial 12 month period is up, they may allow you to sign another 12 month or month-to-month lease
Have a look at the Instructions For Borrowers sheet for more information regarding how this process will work for you.
Your biggest question probably revolves around how you begin the process... To initiate the process you essentially need to initiate a conversation with your lender, the same as you do with a short sale. Talk to them about your situation and ask them if you are eligible for the Deed for Lease Program.
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