Myrtle Beach Real Estate by Mirela

WOW! This is BIG: Fannie Mae launches 'Deed for Lease' program

Fannie Mae announced Thursday it is launching a “Deed for Lease Program” which will allow homeowners facing foreclosure — if they qualify —to lease their homes for up to a year.

To get that option, homeowners have to deed the property to Fannie Mae.

“The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications,” said Jay Ryan, vice president of Fannie Mae. “This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.”

The program is designed for borrowers who do not qualify for some other loan workout program.

Borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, then the owner leases the house at a market rate.


*NOTE: Not my writing, but breaking news I wanted to share with you asap.  Here is the link to the story:

Fannie Mae Getting into the Rental Business

Fannie Mae launches 'Deed for Lease' program

 

 

      You Tube      

 

 

Comment balloon 16 commentsMirela Monte • November 05 2009 11:17PM

Comments

Interesting program, at least is keeps money flowing into Fannie Mae.

Posted by Dan Edwards 425-276-7008 (Keller Williams Realty - Bellevue) almost 11 years ago

...And it keeps people in their own homes!!!

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) almost 11 years ago

That is smart, smart, smart! 

Bravo!

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) almost 11 years ago

Interesting, I'll have to read up on it for the details.  Does this ultimately just prolong a foreclosure hitting the market?  Will it still end up a discounted bank owned property?

Posted by Brian Brumpton, Boise Idaho Real Estate (Keller Williams Boise) almost 11 years ago

It does sound like it could be a reprieve that might help some home owners get on their feet.  If it can help even a few people then I think it well be worthwhile.

Posted by Theodora Wu (TJ Investments) almost 11 years ago

Do you know the criteria for qualifying?

Posted by Michelle Carr Crowe almost 11 years ago

Yep I'll have to look into this, it sounds interesting

Posted by Heather Adkinson, Real Estate Agent - Moses Lake (Windermere K-2 Realty LLC www.propertiesinmoseslake.com) almost 11 years ago

Hi Mirela,

Hum, that's a new one of me!

Posted by Lynda Eisenmann, Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co (Preferred Home Brokers) almost 11 years ago

Mirela,

I will have to check this out.  I do see this as a plus but, am curious about the details. 

Posted by Larry Story, Total Care Realty, LLC, Greensboro, NC Real Estate (Total Care Realty) almost 11 years ago

Sounds like a great way to help home owners that might have a short term problem.

Posted by Charles Perkins (Charles G. Perkins, CPA) almost 11 years ago

It will be interesting to see how this plays out. Could be a good option for home owner's in trouble but it is difficult to see the long term benefit for Fannie Mae.

Posted by Robert Savage, Bakersfield Short Sales, Property Management, Cash (Bakersfield Property Solutions) almost 11 years ago

This will be interesting to see how it plays out-- it either could prove out to be good or bad .

Posted by Bob & Carolin Benjamin, East Phoenix Arizona Homes (Benjamin Realty LLC) almost 11 years ago

Mirela...I like the idea of the stability this offers on the surface, But like huge ocean liners and icebergs there is more below the surface and some in motion are hard to stop. Does Fannie Mae have to staff to take n such under taking...when they can't get out of their own way now?

Posted by Steve Loynd, 800-926-5653, White Mountains NH ( Alpine Lakes Real Estate Inc., ) almost 11 years ago

Mirela - I am still trying to digest this and determine whether it will help stabilize things or just push the problems out into the future.

Posted by Mike Saunders (Lanier Partners) almost 11 years ago

Very interesting solution for keeping foreclosed "vacant" homes occupied and create a stream of income for the banks.  Sounds win-win for anyone who is looking to rent after losing their home, considering they may not be credit worthy to qualify for renting.

Posted by Melinda (Mel) Peterson, The Blessed Realtor - ABR, CRS (Grants Pass, OR) almost 11 years ago

Look for changes on this one - once lenders assume the liability of being landlords, their plans may change - it's a well intentioned program, but banks are not accustomed to being property managers and there is a whole lot of room for mistakes in this approach.

Posted by Drick Ward Property Management / Broker Assoc, "RealtorDrick" - Experienced Representation (NEPTUNE REALTY) almost 11 years ago

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