Mortgage Release

Fannie Mae's Mortgage Release™ program is part of the Servicing Alignment Initiative and replaces the deed-in-lieu of foreclosure workout option. Under Mortgage Release there are three exit options:
 
1. immediate move (standard Mortgage Release)
2. three-month transition with no rent payment required
3. twelve-month lease with market rent payment
 

Related Links

Mortgage Release Transition Options

The Mortgage Release transition options allow qualifying borrowers (or tenants) of properties transferred through a Mortgage Release to remain in their home by executing a lease in conjunction with the Mortgage Release.

A borrower who is eligible for a Mortgage Release and who indicates an interest in remaining in the property as a tenant must be considered for the three-month transition or twelve month lease. For more information, refer to the Servicing Guide, Part VII, 606 and Servicing Guide Announcement 2012-25.

Resources

Mortgage Release Forms

Form Title
Form 187 Mortgage Release Program Lease Option Referral Form
Form 188 Fannie Mae Deed-for-Lease Program Cancellation Form
Form 193 Mortgage Release Program Transition Option Referral Form

Servicing Guide