“While it may be sometimes tougher for us to sell a property when people are in it, we understand that lots of people are in tough situations right now,” said Chuck Greener, a Fannie Mae spokesman. “If a renter wants to stay in their home, we’ll make that happen. And if they want to move out, in many cases we’ll help them pay for the move.” – NY Times
Here’s a story that hits close to home for me. If anyone out there has been following this blog, you will know that I am a renter in foreclosure (I have pegged it predatory renting). Meaning, my landlord is in foreclosure, happily collecting rent from me every month, not paying the mortgage (WAMU) as the foreclosure clock ticks and there is nothing I can do but move.
My search for a new rental here in the Inland Empire of California has been frustrating to say the least. It seems like 1 in 2 homes that I look at are in foreclosure and who knows if the others will soon be foreclosed on also and it sucks! Apartment life is not looking too appealing either.
I guess that is why people like to own property (for property control and rights) and not rent, right?
In a move that provides relief to thousands of renters who face eviction but draws the federal government even deeper into the housing market, the loan giant Fannie Mae said Sunday that it would sign new leases with renters living in foreclosed properties owned by the company.
It is the first nationwide effort to provide widespread relief to renters ensnared by the unfolding mortgage crisis, and it will effectively transform Fannie Mae — a government-controlled mortgage finance company — into a national landlord. It may also increase pressure on private lenders to establish similar programs and on lawmakers to pass renter relief.
Actually, I feel this is a smart move by Fannie Mae and a great solution to three major problems at once. It solves predatory renting issues, keeps homes occupied (thus reducing community blithe), and keeps cash flowing to lenders.
Hopefully more lenders will follow suit soon.
Predatory Renting Blog Posts by Moe:
Predatory Renting -The perfect crime is being perpetuated across America and there seems to be no laws or any way to prevent it.
A new scam has been born with the advent of foreclosure boom. Predatory Renting
“This is an explosion,” said Judith Liben, a lawyer at the Massachusetts Law Reform Institute. “This isn’t business as usual. These are investors that overleveraged themselves, and the renters are collateral damage in the mortgage crisis.”
Senator Christopher Dodd, introduced similar legislation, said “A foreclosure doesn’t’t differentiate between a homeowner and a renter residing in a defaulting property.”
First let me disclose that I am a “renter” and my investor/landlord/Realtor is being foreclosed on -
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