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
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)
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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.”