Rent Your Own House?
Filed Under Uncategorized · Tagged: distressed property, fannie mae, foreclosure, freddy mac
In an attempt to slow down the ridiculously high foreclosure rate, Fannie Mae recently implemented its new “lease-for-deed” program for borrowers in danger of defaulting on their loans who do not qualify for loan modifications.
The deed-for-lease program allows home owners to essentially giver their deed back to their lender (bank) and then sign a lease to stay in the home. With the rising stream of foreclosures, Fannie Mae created this program to allow underwater (or soon-to-be underwater) borrowers of Fannie Mae owned or backed loans who are unable to qualify for loan modifications a way to stay in their homes.
Stipulations include:
- Borrowers must not qualify for loan modification
- Borrowers must live in the home as their primary residence
- Borrowers must prove they can afford “market rent”
- Payment cannot be more than 31% of borrower’s pre-tax income
The program is useful in that it allows troubled parties a way to keep their roof over their heads, but it will not alleviate the eventual sale of the distressed property. On the bright side, though, Fannie Mae hopes that this act of generosity will reduce the number of abandoned and/or vandalized foreclosures. Down the road the properties will likely be sold as REOs.
For more details please visit Fannie Mae online.
Agent Profile
Jesse Knight specializes in residential real estate with a focus on first time home buyers in the Portland Metro market. Through face-to-face meetings and the targeted use of technology tools, Jesse provides complete representation. Jesse is your consultant, advocate and all around real estate professional.
Comments