Fannie Mae, or its designee, will take the steps necessary to further verify subject property and occupant eligibility.
The following table provides the subject property eligibility criteria for a Mortgage Release transition option.
|✓||Subject Property Eligibility|
There are no zoning or HOA rental limitations that would prevent a Mortgage Release transition option.
If a property inspection or property valuation reveals damage to the subject property, the estimated total cost to repair the subject property must be less than 10% of its estimated market value (estimated “As Is” sales price).
Note: If the estimated total cost to repair the subject property is between 10% and 15% of its estimated market value, the servicer must submit the Mortgage Release transition option to Fannie Mae to obtain prior written approval. A subject property with an estimated total cost for repairs greater than 15% of the estimated market value is not eligible.
The subject property does not have any environmental contaminations or pose any potential legal risk.
The subject property is in compliance with local rules and laws, or can be brought into compliance within 30 days.
The subject property is not within a target area for any corporate, government, or community neighborhood stabilization plan which may need the property as part of the plan for purposes other than residential.
The rental income, if applicable, is anticipated to cover ongoing maintenance and management costs
For more information please see F-1-14, Processing a Fannie Mae Mortgage Release (Deed-In-Lieu of Foreclosure)