There are thousands of renters who have become victims of the current housing crisis due to banks foreclosing on the properties they have been living in. Many of these tenants are totally unaware that their landlords are in trouble until an eviction notice arrives in the mail or is posted on the front door.
Approximately 40% of the 17,000+ foreclosed properties in San Diego County last year were occupied by renters which means that 7000 families were evicted from their homes.
Starting February 1, 2009, Fannie Mae plans to allow renters in 4000 homes it owns nationwide to rent on a month-to-month basis until a new owner buys the property. Freddie Mac, the other major secondary lender, expects to follow a similar policy shortly. Fannie Mae and Freddie Mac’s reasoning is that by keeping foreclosed properties occupied and in good repair, this will help support local property values and speed up the recovery of the housing market.
If you are planning to rent in the near future we strongly recommend you contact our office so we can obtain a title report to be sure the owner of the property is not in default. This is the best way for you to protect yourself from becoming one of the "other victims" of the housing crisis.
» Posted by Peter
