Yesterday Fannie Mae announced a new program it has designed to further assist homeowners facing foreclosure.
The Deed-for-Lease Program (D4L) allows qualifying homeowners to remain in their homes by signing a lease in connection with voluntarily transferring the property deed back to the lender. According to a press release from Fannie Mae, “The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification.
Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate. To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income. Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.”
To learn more about D4L please visit www.efanniemae.com. There you will find program details, eligibility requirements, and a helpful FAQ document.
The Sacramento rental market is struggling a bit more than usual. There are fewer rentals available and those that are on the market are not seeing a real strong demand.
Our firm rented out an above average amount of rentals in October which has lowered our overall available properties. It appears the winter will be slow and that usually means the spring will see a rebound.
Vacancy rates are holding at around 5% or lower for single family homes, but don't expect rents to rise anytime soon.
You can access our rental survey at our website: www.HomePointe.com and click on Owner Services.
We have noted that the rental market is pretty soft right now. It is a combination of the soft job market, state furloughs, soft real estate market, lower amounts of foreclosures, and finally, school is in sesson and the holidays are close. In sum, everything is working against a strong rental market right now.
One thing I know, the market in Sacramento has never fallen off the cliff. We have a stable job base in the state, the exception this time being the 10-15% pay cuts for state workers.
The next big event will be the new year. Pent up demand usually makes Janaury a strong month. We will see.
The funny thing is that we are still renting property at a brisk pace. Just at lower prices.
Whenever I have an early flight out of Sacramento I always stop at La Salsa Fresh Mexican Grill in Terminal A. Their breakfast burrito and and an orange juice is a real treat.
The burrito includes scrambled eggs, salsa, and chorrizo. Just the right amount of food and made fresh.
My flight to Orlando will be much more pleasant on a full stomach without having to suffer through hungry. Give this place a try on your next flight.
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Property Management Rentals and Maintenance in Sacramento, Yolo, Placer, and El Dorado Counties from offices located in Sacramento, Roseville, and Orangevale, CA We manage residential and commercial.
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