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Saturday, February 26, 2011

Fannie Mae May Rent Your Home to You After Foreclosure

If Fannie Mae is the owner of the property you may be able to stay and rent from the lender or continue a remaining lease protected under the Protecting Tenants at Foreclosure Act.

So who is affected by the rental policy? This would apply to qualified renters occupying a Fannie Mae owned home at the time of the foreclosure.  If you are a homeowner and your home is foreclosed but is owned by Fannie Mae you may be able to rent through Fannie Mae’s Deed for Lease program.
If you are renting a single family home, two units to four units, condo, co-op, or detached single family home or manufactured home, this policy applies to you.  You do have to go through an approval process and may have to go through a credit check and criminal back ground check if the house is insured by Federal Housing Authority (FHA).
You may receive a notice from a local real estate agent and or property manager who will contact you and to notify you of the options available to you.  A flyer maybe left called “Know Your Options”, this will give you more detailed information and how to inquire about this option.
Are there any requirements to lease from Fannie Mae? The property must be up to code with all local laws and local code requirements for a rental property.  You must be occupying the home at the time of the foreclosure; you may have to go through a background check and a credit check.  If a potential renter does not meet these requirements, relocation assistance maybe offered as an alternative.

Signing a new lease and relocation assistance? If you sign a new lease, you may be eligible at the end of the 12month lease for relocation assistance. The amount of the relocation assistance is equal to one month’s rent and tenant’s compliance with the terms of the lease.

How much will I be charged for rent? If you are signing a new lease with Fannie Mae, you will be subject to current rental market rates in your area.  We may determine the local market rate by researching comparables, conducting a neighborhood survey or through other methods.

Will Fannie Mae try to sell the property? Fannie Mae reserves the right to market and to try to sell the home during the term of your lease, they also may need to make improvements to the property and if sold the lease can be transferred to the new owner.

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