Last reviewed 10-31-2026Short-Sale.com Editorialglossary
Take-Out Option
Fannie Mae
Updated 10-31-2026
Take-Out Option
A post-conversion disposition option that requires the lender to redeliver as a whole loan a repurchased convertible adjustable-rate mortgage that was in an MBS pool following its conversion to a fixed-rate mortgage and to continue any recourse or credit enhancement that initially applied to the mortgage (unless Fannie Mae agrees it is no longer needed).
Fannie Mae Glossary of Terms
Fannie Mae · p. 48
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