The Deed-For-Lease™ option is a program from Fannie Mae that allows you to lease your home after you have transferred the title to your property to the mortgage company (commonly called a Deed-in-Lieu of Foreclosure). The lease terms are up to 12 months (with the possibility to extend longer). And the monthly rent is based on the current rental rates for your area—not on your original mortgage payment.
Deed-for-Lease is an alternative to foreclosure and may be an option if:
You are ineligible to refinance or modify your mortgage, you are facing a long-term hardship, you are several months behind on your mortgage payments, you may owe more on your home than it’s worth, you have not been able to sell your home, or you want to remain in your home.
Deed-for-Lease is available for loans owned by Fannie Mae. If you loan is not held by Fannie Mae your lender may have similar programs available.
What are the benefits of a Deed-for-Lease?
Eliminate or reduce your remaining mortgage debt; Resolve your delinquency and avoid foreclosure; Stay in your home and neighborhood (no need to move or relocate); Lease at current market rate rent for up to 12 months with a possible option to extend the term; Pay no security deposit; Assistance for relocation may be available at the end of your lease; Start repairing your credit sooner than if you went through a foreclosure; May be able to get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) by executing a Deed-in-Lieu than if you went through foreclosure (at least 7 years).
To explore your options I would recommend contacting a good Real Estate attorney.
