A Short Sale
Up until now, there has been only 3 options when you can no longer afford to pay for your mortgage
Fannie Mae has come up with a 4th one. .
Introducing Deed-For-Lease-Program from Fannie Mae
A new program that allows you to temporarily lease your home. You first transfer the ownership of your home to the mortgage company (called a Deed-in-Lieu of Foreclosure, see below) in exchange for release from your mortgage loan and payments. You can then rent the property back — at an affordable rate — and remain in the home as a tenant. Deed-for-Lease benefits:
Stay in your home and neighborhood — no need to move or relocate
May be able to recover your credit score faster than if you went through foreclosure
Assistance for relocation may be available at the end of your lease
On the surface this could be a salvation for some homeowners.. but I really doubt that homeowners will be willing to stay as tenants on the homes that they have just lost to the lender(s)
Lenders do not really think this way. . .is it just me?
Time will tell. .
What do you think?