It was well known in the real estate world that banks didn’t like to take deed-in-lieu of foreclosure from sellers in trouble. Any seller that has tried to negotiate one of these in the past two years has gone up against a brick wall.
It is well known in the real estate world that there are a lot of foreclosure. Any moderately active real estate agent here in Salem Oregon has done deals with Fannie Mae and Freddie Mac. Fannie Mae, in an effort to control the flow of its foreclosures, recently announced that they will do a Deed for Lease program.
How Deed for Lease works is that if you are a seller in trouble who doesn’t qualify for a loan modification, they will consider renting the house to you for up to one year after you deed it over to them. The fact is that Fannie can’t sell and process the houses fast enough. This way, the house is at least occupied for a while and maintained. Part of the problem for banks is the damage that is occurring to unoccupied property. Personally, I think this is one of the smarter moves that lenders have made…which isn’t saying a whole lot, let me tell you.
So…for those of you that have a Fannie Mae held loan, and you are facing foreclosure here in the Salem Oregon area. See about the Deed for Lease program. It might be the right choice for you, if you don’t feel that a short sale is what you want to do.