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Fannie Mae: Tenants Can Stay

Fannie Mae won't evict tenants after foreclosures

By Peter Fearon,  Newser Staff

Posted Dec 15, 2008 4:22 AM CST
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(Newser) – Fannie Mae is offering to sign new leases with renters living in properties that have been foreclosed and are now owned by the the government-controlled mortgage company. The move brings relief to thousands of people caught in the mortgage crisis, but it turns the insitution into a huge national landlord and will drag the federal government deeper into the mortgage mire and an ocean of debt, reports the New York Times.

“There are renters all around the country who have been holding up their end of the bargain and paying their rent faithfully, but the landlord got into trouble, and so the renter is now unfairly facing eviction,” said a spokesman for a consumer advocacy group. “It’s good news that Fannie Mae is doing this. The question is whether private sector will follow suit.”

Most banks evict tenants when they foreclose on homes. Fannie Mae says it will allow residents to stay in their homes.
Most banks evict tenants when they foreclose on homes. Fannie Mae says it will allow residents to stay in their homes.   (AP Photo/David Zalubowski)
Fannie Mae has announced it will allow residents to stay in foreclosed homes.
Fannie Mae has announced it will allow residents to stay in foreclosed homes.   (AP Photo/Reed Saxon)
The Fannie Mae building in Washington DC. Fannie Mae says it will allow responsible residentd to stay in their homes despite foreclosures.
The Fannie Mae building in Washington DC. Fannie Mae says it will allow responsible residentd to stay in their homes despite foreclosures.   (AP Photo/Manuel Balce Ceneta)
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Fannie Mae to end tenant evictions in foreclosures
Wall Street Journal

 
Bank of America • subprime mortgages • Freddie Mac • Fannie Mae • mortgage defaults • JPMorgan Chase • evictions • tenants • renters • National Community Reinvestment Coalition • Federal Housing Finance Agency • foreclosures

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