The problem is that many renters who pay rent on time are finding themselves under eviction, because their landlord has lost his property. Its made victims of well intentioned people who played by the rules. The Federal Govt recognized this as a national crisis. The magnitude of the problem is really quite sad.
More than 20% of the properties facing foreclosure nationwide are rentals. Some analysts estimate as high as 40% of all foreclosed homes being auctioned off are multi family rental property. The Mortgage Bankers Association thinks as many as 20% of all foreclosed homes are not owner occupied. Many speculators did not have the deep pockets and couldnt hang on. The result is really a national tragedy.
Fannie Mae’s National REO Rental Policy
Now a National Landlord
Here are some of the highlights
- The policy applies only to renters occupying the home at the time of foreclosure or deed in lieu of foreclosure
- You are the property's primary occupant
- Cannot be investment property.
- You can't be in bankruptcy.
- The rent cannot exceed 31% of your monthly gross income.
- Family detached homes, and manufactured housing, where the homeowners associations (HOAs) do not prohibit rentals. The policy applies to all renter-occupied single-family Fannie Mae REO
- Renters will be charged market rate rent under the new lease
- No security deposit will be required
- The occupant agrees to be responsible for regular maintenance, to keep the property in good condition, and to permit marketing of the property for sale.
- Fannie Mae reserves the right to market the property while a tenant is occupying the property. The property may be sold to an investor subject to the lease.
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