Friday, January 30, 2009

Fannie Mae Extends Eviction Suspension Another Month

by Calculated Risk on 1/30/2009 12:11:00 PM

From Fannie Mae: Fannie Mae Extends Eviction Suspension Another Month (hat tip Bradley)

Fannie Mae (FNM/NYSE) today announced that it will extend its suspension of evictions from Fannie Mae-owned single-family properties through February 28, 2009. The suspension applies to all single-family properties including owner-occupied properties that have been foreclosed upon as well as foreclosed properties occupied by renters.

The company this month began implementing its National Real Estate Owned (REO) Rental Policy that allows qualified renters in Fannie Mae-owned foreclosed properties to stay in their homes. The new policy applies to renters occupying any type of single-family foreclosed properties at the time Fannie Mae acquires the property. Eligible renters will be offered a new month-to-month lease with Fannie Mae or financial assistance for their transition to new housing should they choose to vacate the property. The properties must meet state laws and local code requirements for a rental property. On behalf of the company, property managers are contacting renters in Fannie Mae-owned foreclosed properties to notify them of their options.
It is usually easier to sell a vacant home, but with the glut of homes on the market, and because the foreclosure is not the fault of the renter, this policy seems to make sense.