If you simply cannot afford your home anymore, but don’t want to leave your home and take your kids out of school, the Deed-for-Lease option may be a good fit since you can avoid foreclosure while staying in your home.
What is Deed-for-Lease?
The Deed-For-Lease™ program allows you to lease your home after transferring the title to your property to your mortgage company (known as a Deed-in-Lieu of Foreclosure). Typically the lease terms extend up to 12 months, and the monthly rent payment is based on the average rental rates in the area as opposed to your monthly mortgage payment.
Deed-for-Lease is an alternative to foreclosure and may be an option if:
- You cannot refinance or modify your current mortgage
- You are dealing with a long term hardship
- You are seriously delinquent on your mortgage payments
- You owe more on your home than it’s worth
- You haven’t been able to sell your home
- You want to stay in your home
|How does it work?
If your loan is eligible for Deed-for-Lease,
1. Your mortgage company will refer you to a property management company to perform an inspection and review your finances
2. You will sign a rental agreement if qualified
3. You will sign a Deed-In-Lieu of Foreclosure to transfer title to the property to your mortgage company
4. Your lease becomes effective when the Deed-In-Lieu is completed
5. You will stay in your home and pay according to the terms of the new lease
6. The property management company will collect rent and manage the property
What are the benefits of a Deed-for-Lease?
- Dismiss most or all of your remaining mortgage debt
- Resolve delinquency and avoid foreclosure
- Stay in your home
- Lease at market rate rent for up to 12 months with a possible extension
- No security deposit
- Relocation assistance may be available at the end of your lease
- Repair your credit faster than if you went through a foreclosure
- Purchase a home in as little as 2 years as opposed to 7 years with a foreclosure