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April 17, 2014

Fannie Tweaks Deed-in-Lieu Requirements

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Fannie Tweaks Deed-in-Lieu Requirements

Fannie Mae announced more exit options for borrowers involved in a deed-in-lieu, and the government-sponsored enterprise also has renamed the procedure. The organization says it has changed the term “deed-in-lieu” to “mortgage release” in the foreclosure process.

Among the newly announced exit options, “the first is the standard mortgage release or immediate move process,” HousingWire reports. “The guidelines escalate in terms of borrower flexibility with the initiative also offering a three-month transition option with no rent payment required and a 12-month lease with market rent payment option.”

Mortgage servicers also are no longer required to get written approval when they wish to postpone a foreclosure sale on a loan that is more than 12 months delinquent. 

The changes are slated to take effect by March 1, 2013. 

View the policy changes at HousingWire.

Source: “Fannie Mae Announces New Deed-in-lieu Requirements,” HousingWire (Nov. 28, 2012)