Fannie Mae starts new foreclosure rental policy

NEW YORK Tue Jan 13, 2009 7:56pm GMT

Related Topics

NEW YORK Jan 13 (Reuters) - Fannie Mae FNM.P FNM.N said it would allow qualified renters of foreclosed properties owned by the government-controlled home funding company to stay in their houses.

Under its new National Real Estate Owned (REO) Rental Policy, renters in homes at the time Fannie Mae acquires the property will be offered a new monthly lease with Fannie Mae at market-rate rent or financial help with new housing if they opt to move.

Eligible renters are those living in two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing, Fannie Mae said on Tuesday in a statement. The properties need to meet state and local codes for rentals.

"Renters in foreclosed properties have often been a casualty of the foreclosure crisis the country is facing," Michael Williams, chief operating officer of Fannie Mae, said in the statement.

The company has an eviction suspension in place through the end of January, which will allow for the new policy to be fully operational prior to the suspension concluding.

Plans were announced in mid-December for the new foreclosure rental policy, which is now fully implemented, a Fannie Mae spokeswoman said.

Fannie Mae said it will manage the properties through a real estate broker or a property management company while marketing the units for sale. (Reporting by Lynn Adler, Editing by Chizu Nomiyama)

FILED UNDER: