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: