Fannie Mae has established the National Real Estate Owned (REO) Rental Policy, which will allow qualified renters in Fannie Mae-owned foreclosed properties to stay in their homes. The company currently has an eviction suspension in place through the end of January, which will allow for the new policy to be fully operationalized prior to the suspension's expiration.
‘This policy will allow qualified renters to remain in Fannie Mae-owned properties should they choose to do so, mitigate the disruption of personal lives that foreclosures can cause and help bring a measure of stability to communities impacted by high foreclosure rates,’ states Michael Williams, Fannie Mae's chief operating officer.
The new policy applies to renters occupying foreclosed properties at the time Fannie Mae acquires the property. Renters occupying any type of single-family property will be eligible, including residents of two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing.
Eligible renters will be offered a new month-to-month lease with Fannie Mae or financial assistance for their transition to new housing should they choose to vacate the property. The properties must meet state laws and local code requirements for a rental property.
While the company markets the properties for sale, Fannie Mae will manage the properties through a real estate broker or a property management company. The company will not require security deposits to be posted in connection with this program.
SOURCE: Fannie Mae