Comments on: Fannie Mae Announces Deed for Lease Program

By: Jerry Gropp Architect AIA

Jerry Gropp Architect AIA — Wed, 11 Nov 2009 05:43:56 +0000

Rhonda- I like the “on hold” idea. When are we ever going to get back to a kinder, gentler world? J-

By: Rhonda Porter

Rhonda Porter — Tue, 10 Nov 2009 01:30:21 +0000

Jerry are many “shoulds”… I’ve been thinking of a program along these lines but instead of the home being immediately deeded back to the bank, it’s put on hold for about 12 months where the “home owner” has a chance to get it back… I did not picture Fannie putting these homes immediately on the market but it is there right to do so.

By: Jerry Gropp Architect AIA

Jerry Gropp Architect AIA — Tue, 10 Nov 2009 00:29:24 +0000

Rhonda- There should be an adjunct program that would allow/help former owners/now renters to get back to where they were before foreclosure by demonstrating responsibilty for the property in question. The experience might well be motivating- nicht wahr? J-

By: Rhonda Porter

Rhonda Porter — Mon, 09 Nov 2009 19:08:56 +0000

Danny, I believe your credit will be treated the same as a “deed in lieu of foreclosure” which is what would be required for you to participate in this program.

Have you tried the loan mod program?

By: Danny in Atlanta

Danny in Atlanta — Mon, 09 Nov 2009 18:50:33 +0000

I forgot to mention, I was well below the 80% loan to value mark before this real estate fiasco. Now I am probably a good deal above 100% loan to value.

By: Danny in Atlanta

Danny in Atlanta — Mon, 09 Nov 2009 18:43:52 +0000

To a couple of people questioning who will be responsible for repairs, I would answer this way: Fanie will turn the property over to a property manager, and it would be operated as any other rental property, with the manager telling the owner, AKA Fannie, that the repair is needed and get the money to do so. That is what I would expect.

I am considering this program, as I am upside down in my mortgage, through no fault of my own. I am looking to relocate very soon and will not be able to sell my home for enought to cover the mortgage. I have never missed a payment, or even been late, but I cannot afford two homes at one time. I believe that my questions have been answered above, btu I will ask anyway. What is the likely hit to my credit, and am I responsible for any taxes on the perceived income to the IRS or any penalties for doing this? Thanks.

By: Rhonda Porter

Rhonda Porter — Mon, 09 Nov 2009 15:32:18 +0000

Jerry, here are two potential downsides I see right off the bat:

1) the homeowner no longer owns the home and they are now a renter living in what used to be theres while the government/FNMA has it listed to sell. It’s not really an incentive for the previous owner to cooperate with the selling of their home now that they’re a tenant.

2) who will do the repairs on the home now that Fannie/Gov is the landlord? We’re facing winter…let’s say a pipe freezes–the former owner is not responsible for fixing this…FNMA/Gov–IE TAXPAYERS will be. Perhaps the Gov will create a department within FEMA to handle repairs on all their rentals.

By: Jerry Gropp Architect AIA

Jerry Gropp Architect AIA — Mon, 09 Nov 2009 15:12:04 +0000

Rhonda- It’s hard for me to see a downside to this program. Foreclosure is the worst of all worlds. J-

By: Rhonda Porter

Rhonda Porter — Sun, 08 Nov 2009 01:47:42 +0000

Sorry, Cheryl, I have no idea.

By: Cheryl Johnson

Cheryl Johnson — Sat, 07 Nov 2009 19:10:52 +0000

Can someone point me to a link with information about registering my company for consideration as a Deed for Lease PROPERTY MANAGER? I’ve been searching the web for a couple hours and haven’t come across it. Thanks!