Are You Looking For A Lifeline After Foreclosure?

What does it mean when your home is underwater? It means you owe more on your home than it is worth in the open market.

So what do you do? Millions of people walk away, ruining their credit for many years.

Lenders want to do everything they can to keep people in their homes. They are often willing to modify mortgages.

The Washington Post reports:

There is new vocabulary in mortgage lending: D4L.

In order to be eligible for a D4L, or Deed for Lease, you must go through a DIL, short for a deed in lieu of foreclosure.

These terms become relevant when your house is underwater — the market value is less than what you owe. You have attempted to sell your home without success, and your lender is threatening to foreclose. Instead, you ask your lender for a simpler solution: "Why not just take my house and save the expense involved in a foreclosure proceeding?"

But if the lender agrees, where will you live? Fannie Mae has instituted a new program that might help you. Deed for Lease allows some people who've lost their homes to remain in them as renters.