Deed 4 Lease Homeowners Turn into Tenant
Fannie Mae’s Deed for Lease Program enables homeowners who are in financial trouble and face foreclosure to turn into tenants by leasing the property from Fannie Mae and turning the property deed over to the lender.
According to Fannie Mae anybody who is not eligible for loan modification can take advantage of this program. It will keep families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.
The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.
To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.
Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.
For additional information about the Deed for Lease Program CLICK HERE
This blog post is brought to you by SimplifyEm Pay Rent Online and Property Management Software
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Homeowners in Financial Trouble stay in Home as Tenants – Find Out How? is brought to you by SimplifyEm Pay Rent Online and Property Management Software
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