How to rent your home from Fannie Mae
Monday, November 16, 2009
Well, here’s another program designed to help home owners in loan trouble. I hope it helps, but I’m not so sure lenders will go along with the idea of being landlords.
Fannie Mae last week announced a new Deed for Lease™ program. The new program allows borrowers to voluntarily transfer their property back to the lender and then lease back the house at market rate. The lease period is for up to 12 months, with month-to-month contract extensions after that period. The program is designed for borrowers who do not qualify for or have not been able to obtain other loan-workout solutions, such as loan modifications.
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. Homeowners interested in this lease program must be able to document that the new market rental rate is no more than 31% of their gross montly income.
Homeowners thinking of participating in the Deed for Lease™ program should visit Fannie Mae’s loan lookup
website at http://loanlookup.fanniemae.com/loanlookup/ to see whether their loan is owned or guaranteed by Fannie. Mortgages backed by the Federal Housing Administration and other government agencies are not eligible for the Deed for Lease ™ program.
To read the full story, please click here:
http://blogs.wsj.com/developments/2009/11/06/qa-how-to-rent-your-home-from-fannie-mae/
Reprinted with permission of the Calif. Asso.of Realtors. Nov. 2009
~ Barry Ripp