Non-Retention Options
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.
Short Sale
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.
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
