If your situation has
become unmanageable, the thought of leaving your home may be overwhelming. You
simply can’t afford your mortgage payments anymore, but don’t want to leave
your neighborhood, take your kids out of school or find a new place to live. The
Deed-for-Lease option may be a good solution—you can avoid the foreclosure process while still being able to remain in
your home.
What is Deed-for-Lease?
The Deed-For-Lease™
option is a program from Fannie Mae that allows you to lease your
home after you have transferred the title to your property to the mortgage
company (commonly called a Deed-in-Lieu of Foreclosure). The lease terms are
up to 12 months (with the possibility to extend longer). And the monthly rent
is based on the current rental rates for your area—not on your original
mortgage payment.
Deed-for-Lease is an
alternative to foreclosure and may be an option if:
- You are
ineligible to refinance or modify your mortgage
- You are facing a
long-term hardship
- You are several
months behind on your mortgage payments
- You may owe more
on your home than it’s worth
- You have not been
able to sell your home
- You want to
remain in your home and neighborhood
Find out who owns your
loan
Deed-for-Lease is
available for loans owned by Fannie Mae.
What are the benefits of
a Deed-for-Lease?
- Eliminate or
reduce your remaining mortgage debt
- Resolve your
delinquency and avoid foreclosure
- Stay in your
home and neighborhood—no need to move or relocate
- Lease at current
market rate rent for up to 12 months with a possible option to extend the
term
- Pay no security
deposit
- Assistance for
relocation may be available at the end of your lease
- Start repairing
your credit sooner than if you went through a full foreclosure
- May be able to
get a Fannie Mae mortgage to purchase a home
sooner (in as little as 2 years) by executing a DIL than if you went
through foreclosure (at least 7 years)
How does it work?
If your loan is eligible
for Deed-for-Lease,
1. Your mortgage must be
owned by Fannie Mae
2. Your mortgage company
will refer you to a property management company that will inspect your property
and review your financial information
3. You will sign a lease
agreement (if you qualify for the program)
4. You will sign a Deed-in-Lieu of Foreclosure (DIL) to
transfer title to the property to Fannie Mae
5. Your lease becomes
effective once the DIL is complete / accepted by Fannie Mae
6. You will remain in
the property according to the lease terms paying monthly rent
7. The property
management company will manage the property and collect the monthly rent
Next steps
Gather your financial
information—Make sure you have your basic financial and loan information on
hand when you call your mortgage company. You’ll need:
- your mortgage
statements, including information on a second mortgage (if applicable);
- your other
monthly debt payments (e.g., car or student loans, credit
- card payments);
and
- your income
details (paystubs and income tax returns).
Explain your current situation—Be
ready to outline your current hardship and explain why you are having trouble
making your mortgage payment, why this is a long-term problem and why you are
wanting to transfer ownership of your home and lease it back. Your mortgage
company will need to understand the reasons why you are having difficulty in
order to find the right solution for you.
Contact your mortgage company or a Fannie Mae Mortgage Help Center—Tell them you are interested
in the Deed-for-Lease option and you want to see if you qualify.
Is a West Sacramento Short Sale Right for Me?
To get a better idea
of when
your West Sacramento home will be worth what you owe, log in
to www.shortsaleandloanmod.info for
a free estimate or call me today for a free no obligation consultation or for
the latest West Sacramento short sale information. Call me
today and sleep better tonight; you’ll be glad you did.
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