CAREIF.com At Odds with Fannie Mae's So CALLED NEW sign over deed plan, Warns homeowners beware

Nov. 10, 2009 - PRLog -- CAREIF.com is warning all homeowners and person facing foreclosure that under a new program announced by Fannie Mae recently, Qualifying homeowners facing foreclosure to stay in their own homes, is a back door to quick and sure eviction. This is truly a vary bad deal for homeowners who signs over their property. And we do emphasize; their property.

Even in foreclosure you do own that property. Don’t LET ANYONE FOOL YOU TO THAT FACT. It’s only after the sale at an auction conducted by the courts and a buyer is found that you have truly lost your property. It must be noted here, that even on the day of the auction, you can take measures to keep your home. After the sale the laws does give you a short period to recover that home. Don’t lose your power to mitigate by doing such a foolish things as signing over your property to a bank.

Under any such program you; the homeowner, will lose all your rights and will not have much to say when the Sherriff comes to put you, your family and your belongings on the street. And if you have never been evicted; you should know, they put everything and everyone on the street. No homeowner needs to voluntarily put themselves in that position.
In fact CAREIF.com believes anyone who takes control of their lives and signs to an insensitive institution, is amongst those who would qualify as being amongst the foolish. More so if you really just simply want to quit and go without a fight.

Don’t just go!! Find and investor who will give you at least some money that will help you to reestablish yourself. No LANDLORD is going to pay you or assist you to leave their premises. Once you sign over your deed to Fannie Mae, that’s what you have done; made them your landlord. At that point you are literally on the street.

“The Deed for Lease Program is designed to help borrowers who aren't eligible or haven't been able to sustain other work-out solutions, including a modification, according to a news release.
Participating borrowers voluntarily transfer their property deed back to the lender; the lender then leases the house back to the borrower at a market rate for up to a year. After the period is up, there's a possibility of a term renewal or a month-to-month lease arrangement, the release said.”

So says Fannie Mae. But the reality of the program is that it’s the same trickery shady real estate transaction and strategy real estate investors have been using for decades to swindle homeowners out of their home without them having a strong position on which to stand.

Make sure you carefully study the language of the program. E.g.
•“Designed to help borrowers who aren't eligible”. If you are not eligible to pay a mortgage how can you be eligible to pay rent. And if you can pay rent why not simply make you pay the same amount to your mortgage or rather note.
•“The lender then leases the house back to the borrower at a market rate for up to a year”.

You the former homeowner are no longer a borrower, losing several rights or protection under federal law. Most importantly renting you back at market rates. Market rates are often times comparable, equal to or above what you would be paying for a mortgage. Simply put, if Fannie Mae plans to use market rates, they are using rates at which landlords are renting at a profit, normally more that what a mortgage on home of comparable value would be going for in terms of mortgage payments. There is the landlord profit motive. Most landlords typically borrow for the investment property at a higher interest rate than if you were primary buyer or first time buyer. So chances are, his monthly expenses are higher  than what the former homeowner would have been paying on a note on monthly basis.

As the Owner of the home., even in foreclosure there are several legal strategies and options open to you to hold on to your home. Or at least give you a fair chance to recoup some of your investment. This so call new program is not at all new. Many real estate investors have faced criminal charges for tricking gullible and vulnerable homeowners out of their homes USING SIMILAR if not the same sign over program with the rent to own clause. This is great for the Investor; in this case Fannie Mae, because they know  and have calculated that you; the former homeowner, will be out in a shorter time; than you would in a foreclosure action, for nonpayment of rent. Again your rent will typically be at a higher rate than you were in fact paying on a note. Further Fannie Mae saves millions in its legal fees. The cost of an eviction is substantially less that it would be for foreclosure action. This especially when they would have made some money off you the former homeowner in term of your rent payment during the interim waiting period.

You are the owner of the home and that puts you into a very strong position. A tenant has no such rights. CAREIF is urging all homeowners in foreclosure to form strong unions and fight together. If fact CAREIF through www.realestateinvestmentclub.com (RIC), which has promoted a foreclosure prevention program for its members for over a decade,  has  decided to work with homeowners in this situation, who would normally not qualify under their programs.
www.realestateinvestmentclub.com (RIC’s) policy is to work with members who have been apart of the organization for at least one year, but is now looking at seriously taking on the foreclosure issues for other homeowners now in that or facing this critical and hart rendering issue.

RIC is pointing out to you the homeowner, in foreclosure or not yet there, that if you can afford to pay rent and Fannie Mae is willing to have you pay rent, why not simply modify the loans and have you pay  on a note. That’s the only solution to keeping you in your home. This works for everyone. Fannie Mae  will then be able to collect money off assets that are currently none productive as long as foreclosure looms over the heads of the residents. And the homeowner begins to maintain and service their note with the confidence of holding on to their homes. Under the Fannie Mae program announced a few days ago; for the homeowner, it’s only a maybe after a year plan!! Now seriously who wants to live in limbo? A maybe lifestyle!? Not the best psychological position to be in!
www.CAREIF.com

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CAREIF is an internet based development company, working with private individuals to open real estate investment market to all people. CAREIF has approved hotel and proposed housing developments in the Caribbean with projected revenue of $14.5Billion