Chicago Condo Directory

November 6, 2009 - Fannie Mae is evidentially wanting to generate some income from all the condo and home owners who are heading for foreclosure and for whatever reason aren’t able to qualify for any mortgage modification. The new program being launched is called Deed For Lease. As the name implies, a homeowner facing foreclosure who surrenders the deed to their mortgage holder will be able to lease back the condo or house at market rate and not have to move, according to a recent press release from Fannie Mae. This allows the former homeowner to avoid the foreclosure on their record and be able to stay in the home.

In order to qualify for the Deed For Lease program, a homeowner or borrower has to be actually living in the foreclosed house and it be their primary home. There can’t be any other mortgages or liens filed on the home or condo either. And even tenants (someone renting the home from the owner) may also be able to qualify for the deal. In any case, you have to have proof that whatever the current market rate rent on the condo or house doesn’t exceed 31% of your gross income.

The leases will be available for up to 12 month periods. After that, you may be eligible for another 12 month renewal or get a month over month extension on the lease. And if the foreclosed condo or house is sold before the lease is up, the new buyer has to honor the terms. But after that lease is up, you’ll have to negotiate with the new owner, who could possibly not be interested in renewing your lease.

If that all sounds too complicated or you aren’t in danger of foreclosure and are just looking for a place to rent, there are lots of New Chicago Condos for rent or with rent-to-own programs being offered right now.

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