No one wants to have a foreclosure on their record and now, thanks to the Deed for Lease program, families have a new way to avoid foreclosure while staying in their own home.
All they have to do is sign the deed to the house over to their lender and then sign a lease to remain in the home. As always, there are some restrictions, such as owners must have mortgages owned or guaranteed by Fannie Mae and owners cannot sustain a loan modification.
This is truly a win-win situation for all parties involved. Families no longer have the uncertainty of where they’ll sleep; lenders are still earning some money from the property; and neighbors don’t have to worry about an abandoned property bringing down their own property values.
Currently leases run for 12 months with the possibility of month to month extensions. If the property is sold, the new owner picks up the lease.
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