Well it looks like tenants occupying homes lost to foreclosure may have just caught a huge break. That is if the homes are owned by Fannie Mae.
“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.”
This is of particular interest to me since just last week I wrote a post on the Dabner family. For those of you who missed that post here is a short recap.
The Dabners were paying tenants who were evicted from their home after their landlord lost the property to foreclosure. In that post I mentioned that it may actually be smarter for the banks to lease the property to the tenant instead of evicting the tenant and adding another foreclosed vacant property to the neighborhood.
Now that Fannie Mae has started offering this program it’s expected that Freddie Mac will follow suit. But what about the private sector?
I find it comical that the banks responses were so predictable. Honestly they were almost identical to some of the comments I received on my post about the Dabner family.
Here’s a great example.
Many ActiveRain Bloggers: “The banks are not in the landlord business.”
The Banks to the New York Times: “We’re not in the business of managing rental properties, and we’re not in the business of being a landlord.”
Correct me if I’m wrong but isn’t the bank already managing the great majority if not all the bank owned properties on the market?
I think Mr. Taylor of the National Community Reinvestment Coalition said it the best.
“These banks need to realize they’re in the property management business now, whether they like it or not.”
Portions of this article were taken directly from the New York Times.
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