As an alternative to foreclosure, Fannie Mae will now (as of November 2009) allow homeowners (who qualify!) to remain in their homes, renting, as tenants… for a year. Month by month extensions are an option (although not guaranteed) after the first year.
The government program is called “Deed For Lease“. In exchange for transfering title over to Fannie Mae, the homeowner (who under current guidelines does not qualify for loan modification) can stay in their home as a tenant. Make sense to move from renting to owning?
It’s a temporary ‘fix’ for homeowners hit hard by the current financial situation, and impacts the homeowner’s credit less than traditional foreclosure does. This is an entirely new alternative to foreclosure. Another alternative to foreclosure is the “Deed in Lieu” as outlined by Alexandra Restivo in MiamiRealEstateCafe (November, 2009).
