Last week, Fannie Mae has announced new deed-in-lieu of foreclosure requirements that will start in 2013. This comes are great news for Knoxville homeowners that are facing foreclosure as it will offer them yet another alternative to avoid foreclosure on their Knoxville home. Under the new guidelines, Knoxville homeowners will now have three exit strategies to avoid foreclosure.
These updated guidelines have many similarities to the new short sale guidelines that were announced by the Federal Housing Finance Agency, which started on November 1. Fannie Mae will now refer to deed-in-lieu of foreclosures as “mortgage releases.” Under the new guidelines, all mortgage servicers will be required to implement the program prior to March 1, 2013.
Fannie Mae will offer the following deed-in-lieu of foreclosure options to Knoxville homeowners:
-Allowing the homeowner to vacate immediately.
-Allowing the homeowner to stay for 3 months without any rent payment.
-Allowing the homeowner to stay for 12 months, but the homeowner will be required to rent for the 12 month at market rent.
In order to be eligible, Knoxville homeowners must be at least 90 days behind on mortgage payments and the homeowner must have experienced some kind of hardship, which must be well documented, through financial statements and monthly bills. Homeowners who are current on their mortgage may qualify as well if there has been a death experienced in the family or if there has been an illness in the family. Active military service members will qualify as well if they have experienced a permanent change of station.
In certain cases, Fannie Mae can request that the borrower make cash contributions for the difference of what is owed on the home. Fannie Mae outlines in what situations they may require homeowners to make cash contributions and the equation they determine if that is necessary. To read more about those requirements, be sure to check out Fannie Mae’s Servicing Guide Outline.
Are you wanting to explore your options to avoid foreclosure on your Knoxville home? If so, do not hesitate to give us a call at 865-696-9002 or send an email to [email protected]. Our team specializes in helping Knoxville homeowners avoid foreclosure, we’ve helped countless Knoxville homeowners avoid foreclosure and would love to help you in anyway that we can.