As a rule, banks generally consider renters to be a liability and want nothing to do with them. When a property goes into foreclosure, these renters are usually unceremoniously tossed out and the building resold. Now Fannie Mae has announced a new program whereby renters in good standing will be allowed to stay in their apartments — if the property is owned by the government-controlled home funding company.
Marketplace Money interviewed Jason Allnutt, a vice president at Fannie Mae.
“You have a family who is networked into the neighborhood, into the school system, into the job market, and it’s very, very difficult to be wrenched out of that network and put on the street to look for a new place to live,” he said.
The policy seems like a step in the right direction, but if only a small one. Currently, Fannie Mae only owns about 10% of all foreclosures. So, how can you tell if your building is owned by Fannie?
There should be an attorney’s name on the foreclosure notice.
“If you call that attorney and say, “Is this a Fannie Mae home?,” I will make sure that those attorneys are ready to receive those phone calls and ready to help those folks who are renters in these properties transition from that foreclosure into a new lease,” said Allnut.