My Landlord is Facing Foreclosure...What About Me?

Many landlords are facing foreclosure.Fannie Mae has created a plan where good tenants that may be eligible to stay in that home.

Here is a synopsis of how this plan works:

A renter who wants to stay in a home that has been foreclosed can now 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. They may pay their rent on time but 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. The 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. 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 company will review any instance where the market rate would increase the tenant’s rent and will work to reach an equitable resolution.

http://www.fanniemae.com/homebuyers/Rental_Policy_FAQ.pdf