Last week we sold a bunch of things on Craigslist. One person who came to purchase the last baby gate was one who had to move to a new house all of a sudden. This move was because the landlord was foreclosing and by default her life was going to have to change as well. The new place has stairs she said and she needed a good gate. She was not happy to have to move this close to Christmas, especially with having small kids. What also irked her was she was told to move within days.
Looks like Fannie Mae is about to change this. According to the WSJ:
Fannie Mae is finalizing a national policy that will allow tenants to remain in their homes even if their landlord goes into foreclosure — a landmark decision for tenants.
The policy will be in effect Jan. 9, Fannie Mae said Sunday, and reflects growing pressure on the mortgage company from a legal-aid group that threatened to sue over recent evictions. The company said it will also ensure its current holiday moratorium on new evictions is being followed until the new policy takes effect.
I’m sure this policy will not remain in the books forever, but in the future though, lenders should at the minimum inform the tenants within a reasonable time period that the landlord is facing foreclosure. The landlord gets to know the credit worthiness of the tenant so its only fair that the tenant has some foreknowledge of what may be coming.
What do you think? I know a lot of you have investment properties. What is a good way to make this situation a win-win for all in the future?
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on Dec 15th, 2008 at 6:46 pm
How long do the renters get to stay? It’s a great temporary solution to vacant foreclosed homes.
on Dec 16th, 2008 at 9:10 am
[...] Mortgage Guruette Aimee Ghimire penned a great article yesterday, Renters May Not Have to Move When Landlords Foreclose on Property, and tips us to further information in the Wall Street [...]
on Dec 27th, 2008 at 9:05 pm
[...] Renters May Not Have to Move When Landlords Foreclose on Property [...]
on Nov 5th, 2009 at 10:48 pm
In- my fight for my life following 8 years battling with Non-Hodgkins Lymphoma, and then a Bone Marrow Transplant performed at the Mayo Hospital in August requiring a three month stay with no qualified financial help, and on high doses of Morphine and Adivan to name a few. I came home at last to find my modest home was to be auctioned on October 30th. I was shocked and due to the pain and the drugs, confused about what this letter meant? Do you have any suggestions as to where I might go from here? It was bought back by the “benefishery.” How much time do I have to find, (I have no idea how), and get into another place? I have a letter from the head Onccologist at Mayo saying a move at this critical time could very well be fatal. I have been to Hell and back with that barbaric procedure. I am a 49 yr. old man who has worked non-stop since my teen yearsl I am very frightened about what is to come … the stress is overwhelming. Any answers or suggestions would be SO very appreciated. Most sincerely, Peter Morales 8209 W. Hammond Lane 85043 plazym@gmail.net Thank you very much.