It just keeps getting better! Wonder how many rent payments will be "lost" along the way?
Fannie to Allow Tenants to Remain in REO Properties
By DIANA GOLOBAY
January 14, 2009
A previous foreclosure and eviction suspension to last until Jan. 9 was announced in November by government-sponsored entity Fannie Mae (FNM: 0.71 -4.05%) 2008 and later — on Jan. 8 — extended to the end of January. Originally said to be a pause to allow time for the streamlined modification process (SMP) to activate on Dec. 15, the suspension also appears to have been the precursor for a new program announced Tuesday — a national real estate-owned (REO) rental policy through which property managers and brokers may collect rent on Fannie’s behalf — and a move by Fannie to essentially become a giant, government-controlled landlady.The REO rental policy applies to renters — not “mortgagers” — living in single-family foreclosed properties owned by Fannie. At the time of foreclosure completion, Fannie offers either a cash incentive for the renter to vacate the property or the option to sign a new month-to-month lease and pay the local market rate. The policy states, however, that the property being occupied by the renter will be listed for sale and may undergo repairs at any time the renter is occupying it. The lease will transfer to the property’s new owner at the time of sale.