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If you’re on time with your payments, but underwater with your mortgage, and your loan
is owned by Fannie Mae (FNMA) and Freddie Mac, you may be able to walk away from your
property without going through foreclosure.
I’m Ilyce Glink with today’s Real Estate Minute.
Fannie Mae and Freddie Mac will let some borrowers who kept up payments as their homes lost value
erase their debts by giving up the properties through a so-called deed-in-lieu of foreclosure
transaction.
Non-delinquent borrowers who have experienced severe illness, job changes or other reasons
they need to move will become eligible in March to apply for a deed-in-lieu.
Previous foreclosure -prevention programs were designed to help only borrowers on the
verge of losing their homes, in effect penalizing those who kept paying their mortgages. Lenders
hope this program will keep more homeowners from falling into foreclosure.
I’m Ilyce Glink, for more details and links visit my website, ThinkGlink.com, where we’re
rebuilding America, one house at a time.