Heads up everyone. I just came across this on The AP about Fannie Mae starting a program that will accept your deed in return for a rental agreement. The author said that this is a deed-in-lieu but it is not. A deed-in-lieu is just you signing over your deed to the mortgage servicer and most of the time it is in full satisfaction so the MS cannot sue you for a deficiency or collect foreclosure fees or collect delinquent fees. I tried to get a deed-in-lieu from PHH for a year. You know what happened to me, foreclosed!
Back to the article. I haven’t come across this new FNMA program anywhere else so please be aware and read everything before you agree to this. Once you sign your deed over, you are not guaranteed anything.
Read the article: Fannie Mae to rent out homes instead of foreclosing. By Alan Zibel. The Associated Press. 11/5/09
WARNING: This news came from a press release from FNMA today, but a quick search on FNMA’s website showed that only renters in foreclosed houses are eligible for this program. Mortgage holders are not eligible. See it here
FNMA may sound well intentioned but my loan was an FNMA loan and did I mention that I was foreclosed on? I will keep my fingers crossed that this is really a new program and that it will work. We shall see.