Fannie Mae Announces Deed For Lease Program

Fannie Mae just announced the Deed For Lease program that will allow qualified homeowners to take a Deed In Lieu of foreclosure and lease back their home for up to one year. Homeowners must qualify in terms of income and any additional liens must be released.

The Deed For Lease program offers homeowners another option to avoid foreclosure when loan modification or forbearance won't work. But, what will the homeowner do if there are additional liens on their property and the lien holders will not agree to release the liens? There's always foreclosure or bankruptcy, but those options may carry heavy credit burdens for the homeowner in the future.

The distressed homeowner in default on more than one lien still needs the option of the short sale to avoid foreclosure. The short sale is an excellent way for the homeowner to get financial relief without the cloud of foreclosure on their credit.