The Fannie Mae Deed-for-Lease program makes foreclosure easy for the banks, but gives no help to borrowers facing foreclosure in Valley Center, CA.
If you’re deciding between a foreclosure or a short sale…and you have a Fannie Mae backed loan…you may be ready to hand the keys over to the bank and call it quits…but before you do that read the fine print…you’ll be shocked to learn how the lenders who are supposed to help you are actually using this program to rip you off!
Government pressure on lenders to reduce foreclosures is supposed to help borrowers, but this program has 22 requirements for anyone that needs help…and if you qualify for this program you have no business going through a deed-in-lieu type foreclosure!
My father had a saying, “Jesse James wore a gun“. 
He meant that if someone was ripping him off…and if they were going to do that in a sneaky way they might as well use a gun so everyone would know what was happening!
The lenders using this Deed-in-Lieu of foreclosure program are stealing from Valley Center homeowners…plain and simple…and here’s why:
- Rent must cover the lenders expenses, including maintenance, and can’t be more than 31% of a person’s income
- The previous owner…now renter…must keep up the maintenance
- The owner must allow the lender to sell the home whenever they want and make it easy to show
- There can’t be any second or third loans, and someone is going to pay for a new title insurance policy
- This home must be the borrowers primary residence
- You must have a job with verified income to qualify
These are the EXACT requirements for a Loan Modification…if you qualify for this program and you want to keep your home why would you allow foreclosure?
Most homes in Valley Center have lost almost 50% of their peak value. If you have a financial hardship, and your home has lost value and you don’t want to keep it…then a short sale is probably better than a foreclosure to minimize damage to your credit and help you get on with your life.
Would it make ANY sense to just give the property back to the bank…and then live there and pay the bank rent until they can sell the home….with NO GUARANTEE of how long you can be there…but a solid guarantee that it will not exceed one year?
In Valley Center there are plenty of rental homes…why would you go through this and take a full foreclosure on your credit if you could just do a short sale…and have no more responsibility and no qualifying for the program? You can move into a home in this area and after a minimum 24 months you can qualify for a new mortgage on a new home.
We know that Valley Center is more rural, so the maintenance costs are higher here…costs the borrower would have to pay…so why would anyone think this was a better deal than a short sale?
The only benefit I can find here is to the banks that created this situation…they get a foreclosure…but have a tenant that does maintenance and pays rent while they sell that person’s home.
If you’re in a problem mortgage, have trouble making payments because of a change in income, or are already late on payments and want to avoid a foreclosure on your credit please call me!
I’m a Realtor here in Valley Center, and have experience helping folks use Short Sales to avoid Foreclosure. Call me…Bob Davis…at 760-525-0123…I’m here to answer all your questions and help you make the best decisions!
Phone Calls are Free…Knowledge is Priceless!
Subcribe by RSS
You must log in to post a comment.