We get calls every day from families in need of rental homes. Most are already renters and the homes they are renting have gone to foreclosure. It’s a scary time out their for all of us. If your a renter, there are no real guarantees that the rent you pay your landlord is going to the mortgage company. As horrible as it is, that’s happening more and more every day.
Good news seems to be on the horizon, according to Brian Faith, Managing Director, Communications on National Tenant Policy. Here is what he had to say on December 15th.
Fannie Mae is finalizing a new policy that will allow tenants in Fannie Mae-owned foreclosed properties to stay in their homes if they can make their rental payments. For tenants who would prefer not to enter into a lease, we will continue to offer monetary support for the transition to a new residence as an alternative option.
Fannie Mae currently has a tenant eviction and foreclosure sale suspension in place through January 9, 2009. The new tenant policy will go into effect prior to the end of the suspension period. The goal of the suspension is to ensure that no renters are put out of their homes during this period. We have notified our attorney and broker networks to cease all eviction-related communications and proceedings during the suspension period. We estimate that 7,000-10,000 families have been able to stay in their homes as a result of the foreclosure and tenant eviction suspension.
We’ve been using the suspension period to fully implement the recently announced Streamlined Modification Program and to review and revise many of our policies and procedures. We’ve announced a new Trust agreement effective January 1, 2009 and new guidelines for servicers to enable earlier intervention with delinquent and at-risk borrowers. In conjunction with our regulator, FHFA, we will continue working to fully support the market and undertake efforts aimed at keeping people in their homes.
What would really help renters of course is a drastic reduction in foreclosure filings, which rose 76% during the three months ended September 30, compared with a year earlier.
Most experts, however, expect foreclosures to continue to soar. If that happens, the number of families thrown out of rental homes is sure to rise as well.
