“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.
Many of my readers know that I am a renter in foreclosure.
A new snake oil business for unsavory real estate investors that I have dubbed “predatory renting” . What this means is that I am renting a home from a landlord who is taking my monthly rental monies, not paying her mortgage, funding her lavish life style and is set for the foreclosure auction block in the next 2 months.
Oh, did I mention she is a Realtor and is doing this on 3 homes and families I know of?
I calculated that she is collecting approximately $8,000 monthly and all homes are in foreclosure. Also, she doesn’t have a job, she certainly isn’t selling any new homes in the IE and her Gothic teenage daughter who she sends to the door to collect her checks has no clue.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America’s secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers.Our job is to help those who house America.
“Renters in foreclosed properties have often been a casualty of the foreclosure crisis the country is facing,” said Michael Williams, chief operating officer of Fannie Mae. “This policy will allow qualified renters to remain in Fannie Mae-owned properties should they choose to do so, mitigate the disruption of personal lives that foreclosures can cause, and help bring a measure of stability to communities impacted by high foreclosure rates.
The good news is that it looks like lenders are starting to realize that millions of homes are being foreclosed on and sitting empty when they could actually be collecting monthly payments.
Wow, imagine that concept?
I actually predicted this over a year ago in a series of blog posts from the past that I called, “The Great American Homeowner Swindle”.
The Great American Homeowner Swindle - October 4, 2007
Moestrodomus..lol
I mean why pay a real estate agent 5-6% when you can control the entire transaction from A-Z? What about property management? You’re going to need to have that service because the majority of your real estate inventory will not sell.
Now you will be renting homes to the American people and I’m sure you will be calling them at dinner to sell them a mortgage while they send you rent every month.
“The Great American Homeowner Swindle”, starring Angelo Mozilo, coming to a foreclosed home near you.
Back to the present.
Yes, this money will not be mortgage payments, but at least it will be cash flow to cash starved lenders and remedy the vacant home crisis for soon to be foreclosed cities.(Yes, that will be the next bail out. Just wait…)
More from my predatory renting Realtor:
Every week Washington Mutual sends a field rep (out of work Realtor) to my door to tack a notice for Mr. McCoy. The problem is Mr. McCoy doesn’t live here (I assume he may have lied on his mortgage application) and his wife who is not even on title is collecting his money and he is no where to be found.(is that legal?)
Sounds like a new TV reality show called, “The Days of Our Foreclosed Lives”.
Hopefully more lenders will follow Fannie like WAMU (my predatory landlord’s lender). Because my family and I really love this home and I promise Mr. WAMU that I will pay our rent on time as we have for the last 2 years. Plus my wife keeps this place in tip top shape and the pool man will insure that we do not have any green crap growing it with West Nile infected mosquitoes flying above it.
Main Point: It will not be “another vacant home” to add to the thousands in the foreclosure dust bowl in Southern California known as the Inland Empire (IE).
More from Moestrodomus…
Is Countrywide Planning to be The Largest Real Estate Company in America? – September 25, 2007
Countrywide is sending mortgage consultants to hold open their foreclosed houses. So now they will capture loans. Multiply that by thousands and thousands of homes and now you have a real estate company to compliment your lending division.
Countrywide Real Estate & Loans? Heck, you might as well open an escrow company also and hire out of work real estate professionals for $10 an hour to run your new real estate company and sink every other that is left standing when this mess is all cleaned up later in the non so “NEAR” future.
I now predict many lenders like Countrywide (Now Bof A) and mortgage servicers will follow suit very soon .…..
WASHINGTON, DC — Fannie Mae (FNM/NYSE) today announced the establishment of a new National Real Estate Owned (REO) Rental Policy that will allow qualified renters in Fannie Mae-owned foreclosed properties to stay in their homes. The company currently has an eviction suspension in place through the end of January which will allow for the new policy to be fully operationalized prior to the suspension concluding.
“Renters in foreclosed properties have often been a casualty of the foreclosure crisis the country is facing,” said Michael Williams, chief operating officer of Fannie Mae. “This policy will allow qualified renters to remain in Fannie Mae-owned properties should they choose to do so, mitigate the disruption of personal lives that foreclosures can cause, and help bring a measure of stability to communities impacted by high foreclosure rates.”
The new policy applies to renters occupying foreclosed properties at the time Fannie Mae acquires the property. Renters occupying any type of single-family property will be eligible including residents of two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing. 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.
While the company markets the properties for sale, Fannie Mae will manage the properties through a real estate broker or a property management company. The company will not require security deposits to be posted in connection with this program.
Renters in the foreclosed properties will be asked to pay market rate rent under the new leases. Rates may be determined by reviewing local comparable rents, conducting a neighborhood survey, or through other relevant indicators. Rates will also be subject to any legal rent control restrictions. The company will review each instance where the market rate may require a tenant to pay additional rent and will work to reach an equitable resolution.
On behalf of the company, property managers are contacting renters in Fannie Mae-owned foreclosed properties to notify them of their options.
For more information, please review the policy FAQs at fanniemae.com.
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