Foreclosure prevention options expand again

Fannie Mae has just announced a “deed for lease” program that will allow people who have been unable to arrange a mortgage modification that works, to if they wish, turn over their deed for a lease that will allow them to rent their house for a year.

To qualify you have to show that you cannot afford your current mortgage and you do not qualify for a mortgage modification.  And, most important, your mortgage must be insured or owned by Fannie Mae.

This is not as good as remaking the mortgage into something you can afford, but it’s better than having to move.  And it is not clear how long you will be able to rent.  Could easily be well over a year.

If you have not started the process of loan modification, you can get free service from government approved local counselors.  A list  is available from HUD.
You can also get names of approved  counseling organizations from the Hope website or by calling the HOPE HOTLINE at 888-995-4673.  The Neighborhood Assistance Corporation does this work too.

Comments are closed.