If a homeowner wants to walk away from a home by mailing in the deed and seeking forgiveness, it’s no longer a deed-in-lieu of foreclosure, according to Fannie Mae. From now on, it’s a mortgage release.
Under the changes, Fannie Mae gives owners three options:
• an immediate move
• a three-month transition with no rent payment
• a twelve-month lease with market rent payment
Other rule changes focus on the mortgage servicers. They don’t, for example, have to get written approval to postpone a foreclosure sale on a home more than 12 months delinquent.
However if you have a 2nd mortgage or an equity line of credit you would need to get approval from that bank to take advantage of this program.
To find out if your loan is a Fannie Mae mortgage click here