As we are always trying to build our arsenal in terms of foreclosure defense strategies, we have constantly said time is on your side and that the cavalry will arrive. So here we have a new government program that may be of interest to all of us by allowing homeowners to stay in their property as a tenant as opposed to a debtor.
Fannie Mae is introducing the Deed-for-Lease Program (D4L), a program designed to minimize family displacement, deterioration of neighborhoods caused by vandalism and theft to vacant homes, and the effect these have on families, communities and home price stabilization.
Here are some of the details regarding the Deed for Lease Program:
- Must be a Fannie Mae loan.
- Cannot be eligible for a loan modification.
- Rent cannot exceed 31% of the household income.
- Provides up to a one year lease- which could possibly become a month to month lease.
- Properties that are eligible for a DIL can possibly qualify for this program. Contingent upon successful DIL.
- Both Primary Residences and Investment properties will qualify for the program.
- Subleasing is prohibited under program.
Other Requirements for Deed for Lease
- The mortgage loan is a first lien mortgage loan secured by a one- to four-unit property. All property types are eligible. Second lien mortgage loans are not eligible.