Do You Qualify For A Deed-for-Lease?

By
Real Estate Broker/Owner with Select Properties of Fayetteville, LLC NC 226467

Read Allan Pape's post today Are You Considering Walking Away From Your House Then You Have Got To Know Your Options  that mentioned the Fannie Mae site http://knowyouroptions.com which provides information on options for homeowners who can not afford their mortgage payments.

Shortly after, I went to the site to check it out. I must say, it is an invaluable site for anyone who is not able to pay their mortgage.

As the blog post stated, the site does outline the 3 options available to someone in that position, namely foreclosure, deed-in-lieu and short sale.

I think most anyone these days is very familiar with foreclosure and short sale and many may know what a deed-in-lieu is.

However, I didn't know what deed-for-lease was until now.

In a deed-for-lease the homeowner can rent bank the property after they have given title to the mortgage lender through the deed-in-lieu.

It sounds like a great option for someone who can not afford the mortgage but can not or does not want to move out of the home. Maybe they love the neighborhood, don't want to disrupt the children's school year or work is close to the home.

Even nicer is that the rent paid would be determined by what the market rents may be, not whatever the mortgage payment was when the individual had the mortgage loan.

The lease period is usually 12 months with a renewal option PLUS the homeowner may even qualify for relocation assiatnce when the time comes to move on.

Only loans that are owned by Fannie Mae qualify for this program. The site even has a great tool to help the user search if Fannie Mae owns the loan. The site did mention, though that even if the loan is not owned by Fannie Mae some mortgage lenders may have a similar program. One need just call their lender and ask.

I think this is an awesome example of a program that can truly assist many families. Oftentimes, the shame and frustration of having to go through a short sale gets ascerbated by the logistical nightmare of finding a place and moving the household. Not to mention tha tif you have a scarred credit report, many property management companies don't want to rent to you.

If this program does what it says it does, those families can at least face the situation with some sense of normalcy and stability in their lives, however small that may be.

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Dan Edward Phillips 08/16/2010 02:38 AM
Topic:
Real Estate General Information
Location:
North Carolina Cumberland County Fayetteville Fort Bragg
Groups:
Realtors®
Out Of The Box!
Posts to Localism
Tags:
fayetteville nc
fannie mae
short sale
deed for lease

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
782,388
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Hi Julissa, great post, thank you for the link and the explination. 

Aug 13, 2010 12:02 AM #1
Rainer
127,754
Julissa Jumper
Select Properties of Fayetteville, LLC - Fayetteville, NC
Fayetteville, NC Real Estate

Hey Dan, thanks for visiting.

Aug 13, 2010 05:40 AM #2
Ambassador
1,553,131
Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Julissa Good job on explaining a program that nay be valuable for some homeowners to consider participating in

Aug 15, 2010 08:13 AM #3
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
127,754

Julissa Jumper

Fayetteville, NC Real Estate
Ask me a question
*
*
*
*
Spam prevention

Additional Information