Fannie Mae has been working on new policies for landlords in foreclosure. The majority of time, in the past, a tenant was evicted from a property in the event of a foreclosure. They were forced to leave, often forfeiting a security deposit and last month's rent. Even if they were current on their rent payments, which was the case, more often than not. And, they didn't have any recourse.
But, Fannie Mae said, this week, that they will let some tenants stay, while a house is advertised for sale. Fannie Mae will sign a new lease with about 4000 tenants. Now this brings up my questions. Which tenants are allowed to stay? Does this mean that the sale is subject to the lease? That upon a completed sale of the property, the new owner must comply with the terms of the lease? Or must the tenant move, upon the sale of the property?
There seems to be some confusion with the new policy, as some consumer advocate groups have indicated that legislation was previously passed, through the bailouts, allowing tenants to stay in their homes in the case of an eviction. But, not everyone had complied with the new policy.
Fannie and Freddie is currently working on loan modifications with borrowers in trouble. They have stopped foreclosures until January end.
This article is authored by Sandy Shores, Melbourne FL Realtor, Brevard County Florida's Space Coast.
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