How to qualify for THE DEED FOR LEASE PROGRAM

Many homeowners have recently found themselves in a very difficult financial situation. High unemployment, decreased home property values and losses in stock market accounts have forced many honest, hardworking Americans to be unable to afford their monthly mortgage, tax and insurance payment. Foreclosure may be inevitable.

However, there is hope. Fannie Mae has created THE DEED FOR LEASE PROGRAM which allows homeowners who qualify to stay in there home - as renters - at a significantly lower monthly payment.

For example, a homeowner who bought a house in Washington D.C. at the top of the market might be able to save $1,300 a month, or $2,000 a month for a borrower in Los Angeles.

Follow these steps to qualify for THE DEED FOR LEASE PROGRAM.

Difficulty: Moderately Easy

Instructions

1. ~ Pursue All Other Techniques to Lower the Existing Monthly Mortgage ~
   
   The Deed for Lease Program is for borrowers who have not been able to negotiate or are not eligible for other modification solutions - such as a lower loan interest rate, lengthened loan term or lower monthly payment.

2. ~ Confirm Proper Ownership ~
   
   The home must be the primary residence of the borrower who wishes to participate in the DEED FOR LEASE PROGRAM.

3. ~ Get all Loans Released ~
   
   The borrower must be released from all subordinate liens and loans on the property.

4. ~ Prove Ability to Pay New Monthly Rent ~
   
   To qualify for the DEED FOR LEASE PROGRAM, the borrower must document by showing paycheck stubs or proof of other income that the new market rental rate does NOT exceed 31% of his or her total income.

5. ~ Contact Fannie Mae to Apply ~
   
   If a borrower meets all the qualifications listed above, the DEED OR LEASE PROGRAM application process can be started by contacting Fannie Mae.
   
   Once approved, the borrower will transfer the property title back to the lender, a market rate rental amount will be agreed upon and the monthly amount to live in the same house will be greatly reduced.