Florida Mortgage Trends

For many good reasons, Fannie Mae is introducing the Deed-for-Lease Program (D4L). "D4L allows qualifying borrowers of properties transferred through deed-in-lieu of foreclosure (DIL) to remain in their home and community by executing a lease of up to 12 months in conjunction with a DIL.  Critics, however, say the company is simply gambling that the properties will eventually sell for a higher price. Investment properties that are tenant-occupied may also be considered as long as the borrower is cooperative in providing information from the tenant to facilitate the D4L." After a servicer (person collecting your checks) determines that a borrower may qualify for a DIL, they will notify Fannie Mae that the borrower may also be eligible for D4L based on "an initial screen of predetermined eligibility criteria. Fannie Mae, or its designee, will take the steps necessary to further verify property and borrower eligibility, determine the rental rate, and, if appropriate, execute the lease agreement."  Qualifications include the ability to pay market rent not to exceed 31 percent of his or her monthly gross income.