If a lender determines that a borrower can no longer keep a property, the homeowner may need help transitioning out of the home. Fannie Mae offers servicers loss mitigation options to assist delinquent borrowers who cannot retain the home.
Mortgage Release ™
Also known as a deed-in-lieu of foreclosure, a Mortgage Release allows the homeowner to voluntarily transfer ownership of the property to the lender. Eligible borrowers have three exit options in this situation:
- Immediate relocation
- A three-month transition period with no rent payment required
- A 12-month lease at market rent payment
In a short sale, the homeowner is able to sell the mortgaged property for less than the balance remaining on the mortgage. In some cases, servicers may offer relocation assistance.