Announced earlier this month, Fannie Mae’s D4L program allows qualified borrowers who cannot pay their mortgage to remain in their homes as renters – after they give up the deed to their property.
Once a borrower has exhausted all of their other loan modification options, they can enter into a deed-in-lieu agreement with Fannie Mae. That means that they give up the deed to the property in exchange for relief of the mortgage debt.
As Chris says, it means, “Take my house and we’ll call it even.”
Once in a deed-in-lieu agreement, the borrower then becomes eligible for the D4L program. Fannie Mae will contact a property management company who will in turn contact the borrower to determine if he or she qualifies for the D4L program.
A few of the requirements are:
- New rent cannot be more than 31% of the household’s gross income
- All other loan modification options must be exhausted
- Property must be in good condition
- In the case of properties that already have renting tenants, all tenants will need to agree to the D4L program for it to move forward
What do you think about Fannie Mae’s program? Is it a good solution to this country’s mortgage issues?