Breaking News!! Renters in Fannie Mae-owned foreclosed properties can stay in their homes. This is such good news for renters. For so long, renters have been ignored as the often complete innocent victim of the housing meltdown. Now, a renter who wants to stay in a home that has been foreclosed can sign a month-to-month lease if the property is owned by Fannie Mae.
Renters live in more than 20 percent of all properties facing foreclosure. Though they may pay their rent on time, they still risk eviction if the property goes into foreclosure. To help minimize disruption to good tenants, Fannie Mae now allows them to stay in their homes with a month-to-month lease. This policy, which applies to properties owned by Fannie Mae, will help bring stability to communities affected by high foreclosure rates.
To qualify, renters must live in foreclosed properties at the time Fannie Mae acquires the property. Any single-family property is eligible including two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing. The properties must meet state laws and local code requirements for a rental property. Fannie Mae will not require security deposits. However, the properties will remain on the market for sale.
Eligible renters will be offered a new month-to-month lease with Fannie Mae or financial assistance to move to new housing if they choose. Fannie Mae will manage the properties through a real estate broker or a property management company.
Rental rates under the new leases will be comparable to other rents in the same market and subject to any legal rent control restrictions. The management company will review any instance where the market rate would increase the tenant’s rent and will work to reach an equitable resolution.
Though this might not affect you, do a friend or family member a favor and pass the info on to someone else. Get the word out.
Read here for more details from Fannie Mae.
To stay completely up-to-date on all the pending mortgage changes, to see how they will affect you, and get news about interest rates and programs, just read my weekly updates - Click for free email alerts.
