Yep, homeowners who are facing foreclosure can stay in their homes — as renters. Fannie Mae just designed a new program called the Deed for Lease Program that allows homeowners to stay in their own homes as tenants. Here is the gist of how this works, according to Market Watch:
Participating borrowers voluntarily transfer their property deed back to the lender; the lender then leases the house back to the borrower at a market rate for up to a year. After the period is up, there’s a possibility of a term renewal or a month-to-month lease arrangement.
For many, this could mean significant monthly savings. Transitioning from a mortgage payment to a rent check each month could save folks thousands of dollars. It could also relieve some financial stress, and allow them to stay in their neighborhoods and school districts.
Although The Harrisonburg Homes Team fully advocates homeownership, we also fully advocate doing the right thing, and in some situations, renting is just a better financial decision!