Saving Foreclosures in Fairfax County VA with New Fannie Mae Program
As the number of foreclosures rise around the nation, some lenders have held their foreclosures in Fairfax County VA in private stock, hoping to sell them gradually in a stabilizing real estate market. That hope has slowly dwindled, however, even with the five-month extension on home buying tax credits signed by the President November 6th of this year.
Government-owned Fannie Mae may have come up with a solution.
Deed-in-Lieu
Some homeowners facing foreclosures in Fairfax County VA have more than foreclosure, loan modification or short sale options. Some qualify for a deed-in-lieu (DIL), where they sign away all their equity back to the lender and walk away “debt free” (except, possibly, for taxes). Unfortunately, a DIL leaves the homeowner without a home to live in, and the lender with a house to sell in an uncertain market.
Deed for Lease Program
Under Fannie Mae’s new Deed for Lease Program (D4L), those who go through the DIL process may be eligible to rent their home back from Fannie Mae at current market rental rates. This may not sound like a great deal, but many families have ended up on the street because of foreclosure. Those who qualify for the D4L Program will be able to remain in their homes for at least 12 months. To learn more, read the entire D4L Program eligibility list. Here are a few of the qualifications:
- No prohibitive Homeowner’s Association rental limitations
- The cost of any required repairs is an acceptable amount, based on the value of the property
- The income the lender receives from the current rental market should be expected to cover any maintenance/management costs
- The current rental rates must be less than 31% of your gross income
- The home must be a primary residence
Whether the D4L Program will help or hinder the number of foreclosures in Fairfax County VA is still up in the air, but it does give homeowners other options – something they’ve been sorely lacking.
If you’re facing foreclosure and qualify for short sale, I’d love to help. Call me at 703-909-3939 or email me at Steve@HomeSearchWebsite.com for more information.
Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939
