Fannie Mae has announced this week that they will allow homeowners facing a Las Vegas Foreclosure to remain in their homes and rent them for up to a year, as a component of the Government’s latest effort to help troubled borrowers. This should also have a positive impact on the Las Vegas Foreclosure Market by keeping more Foreclosures off the market.
Dead for Lease Foreclosure Program
The “Deed for Lease Program lets borrowers who don’t qualify for a standard loan modification program to transfer their home to Fannie Mae, in exchange for a lease Borrowers turned tenant.
They will have to turn around and pay market rental rates for their homes, which in many cases will be much lower than their mortgage payments, enabling them to save money and stay in their home.
The borrower must be able to substantiate that they can’t qualify for a loan modification and/or can’t afford their existing mortgage, but that they can afford to pay for the rent.
Our Take – Las Vegas Foreclosure Assistance Program
This is a good program, it helps the homeowners first and foremost, ensures that these homes are maintained and don’t drag down values in the local neighborhood and also don’t have a negative impact on the overall Las Vegas Real Estate Market.
We would think that Fannie Mae anticipates that some percentage of these homes will appreciate in value during the time that they are renting them out. And, again, this is a great program for Las Vegas Homeowners and for many of others facing Foreclosure around the US!
