Fannie Mae has a Deed-for-Lease option available for those who cannot make their mortgage payments on their homes anymore.
This is an option for people who want to stay in their homes but cannot afford to keep them. For many Baltimore homeowners, this may be a viable option.
What happens in this case is that the bank agrees to a “Deed-in-Lieu of Foreclosure”. The bank essentially buys the house back from the current owner, and rents it back to them for a period of a year or so. The good news is that the lease amount is based on rental amounts in the area — not on the mortgage payment the owner had before.
The Deed-for-Lease option is for Fannie Mae owned loans. They state on their “Know Your Options” website that:
Deed-for-Lease is an alternative to foreclosure and may be an option if:
If you are trying to prevent foreclosure, then this may be an alternative for you. Another choice which could possibly cause less credit implications could be a short sale.
Please contact me to avoid foreclosure in Baltimore. There may be multiple options for you!
Please note that this post is from 2010. Fannie Mae changes programs on a regular basis. Contact Fannie Mae directly if you have a Fannie Mae mortgage and are interested in that program, to find out about your eligibility, and discover whether the program is still in existence.