Fannie Mae announced a last resort option for distressed homeowners today. They will begin working with homeowners who have Fannie Mae serviced loans and are not eligible for the offered “work-out” or modification programs.

From Fannie Mae: Fannie Mae Announces Deed for Lease™ Program

Fannie Mae (FNM/NYSE) is implementing the Deed for Lease™ Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.

“The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications,” said Jay Ryan, Vice President of Fannie Mae. “This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.”

The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.

Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.

President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009.  The act extended the tax credit for first time homebuyers for contracts written before May 1, 2010.  The sale must fund prior to July 1, 2010.  The act also expanded the tax credit for existing homeowners who have owned and occupied their primary residence for at least 5 of the last 8 years.  Surprisingly this expansion is effective at time of enactment which is today November 6, 2009.  That’s a real nice surprise for anybody who is closing in the month of November and fits into that category!

Below are two helpful resources for further detail of the act:

Tax Credit Changes (NAR Government Affairs)

Detailed of certain provisions of the Worker, Homeownership and Business Assistance Act of 2009

I want to send a very big thank you out to all Veterans who have served our country.  We are extremely blessed by our freedom and life would not be the same without each and every one of you.  I appreciate your service to our country and your dedication to the fight for our freedom!

Happy Veterans Day!

We must have a passion for what we do in life.  This man encapsulates the meaning of a niche.  And he loves it.  Simply beautiful.

The Ducks pulled out a squeeker, mortgage rates are low, I heard my new baby’s heart beat for the first time and we get to spend a couple of days with extended family this week! In my book this week couldn’t get any better.

I am more than excited for the Civil War match up this year. The hype in the state of Oregon this week is incredible. I look forward to watching the game next week with anticipation and hope that the Ducks will be making a trip to Pasadena for New Years!

We’re reaching the one year anniversary of the Treasury’s announcement of their plan to begin purchasing Mortgage Backed Securities. On November 26th, 2008 we saw an overnight drop in rates that created a big surge in mortgage applications. Since the plan was initiated the $1.2 trillion (eek) in MBS purchases has sustained mortgage rates for FHA and conforming loans in the 4.5%-5.25% range. There was a bit of worry that the Treasury would pull back the program in early Fall, but now the picture has been painted that we’ll see the remaining funds be phased out towards the end of the first quarter of 2010. The combination of the Home Buyer Tax Credit extension/expansion creates a great opportunity for those in position to purchase RIGHT NOW.

On a more personal level, my wife Kari and I had our first doctor appointment for her new pregnancy and we were able to hear the precious heart beat of our new little one.  Our boy/girl twins are now 21 months and are beginning to get the idea that there’s a baby coming to the Venti house.  I am blessed to have an amazing little family and look forward to the adventure of having more kids than adults in our family!

During this Thanksgiving season, I wish to express my  appreciation to you for placing your confidence and trust in me.  I am blessed to be in a position to serve you, your friends and your family.

May your Thanksgiving be a joyful time of fellowship.  

“Give thanks to the Lord, for he is good; His love endures forever.” Psalm 107:1