Homeowners facing foreclosure may be able to remain in their homes

Fannie Mae has started a program called Deed for Lease™, created with the goal of keeping homeowners who would otherwise lose their home to foreclosure and alternative way of remaining in the home.

Homeowners who qualify and agree to give their home back to the lender via a deed in lieu will then be allowed to lease back the home at a payment in line with the current market. Other considerations in order to participate include:

• Home must be primary residence
• Rental rate cannot exceed 31% gross income
• 12 month lease period
• Inspection of the property to determine house has been maintained

To find out if you have a loan that qualifies for the Deed for Lease™ program contact your mortgage service. For additional information visit Fannie Mae.

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Does a short sale impact your credit the same way a foreclosure does?

Q: Does a short sale impact your FICO® credit score the same way a foreclosure does?

According to a Credit Q&A from FICO®, short sales, deed in lieu and foreclosures are viewed the same and will have the same impact on your credit score.

Source


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HUD/FHA deed in lieu eligibility

HUD has a revised deed in lieu of foreclosure option available for qualified home owners to review.

Deed in lieu of foreclosure may be an option for qualified home owners to use in order to avoid foreclosure. Eligibility requirements according to HUD's website include:

• The mortgagor must provide documentation of a reduction in income or an increase
  in living expense, and documentation, which verifies the borrowers need to vacate
  the property.

Please consult with your mortgage company or attorney if you have questions regarding the deed in lieu process.

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Lender says no to deed in lieu

- Greg Staker - Watson Realty Corp. - 407-304-0255

Lender says no to deed in lieu

We recently received a call from the lender of one of our short sale listings. The seller had decided to give the home back with a deed in lieu. The lender is not willing to accept the deed in lieu and has asked our agent to list the home at a price where it will sell.

A deed in lieu is a way for sellers to deliver property back to an investor in order to avoid foreclosure. In this case it appears the lender would rather accept a short sale over deed in lieu or foreclosure.

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- Greg Staker, Watson Realty Corp., 407-304-0255