Foreclosure Rental Evictions Stopped by Fannie Mae …
When foreclosure in San Diego affects a rental home, it’s not only the owner’s of the home that are affected. Often the tenants have no idea that the home is being foreclosed on. Previously common practice was to evict the renters without a second thought!
Seems a bit unfair right? Especially, if the tenant has been paying rent to the homeowner/landlord up to the point of foreclosure and eviction! In other words, the landlord is pocketing the cash and not putting it towards the mortgage. Worst off, the norm is for the lender to then foreclose on the home and evict the tenants… sometimes with no notice.
Good news is power player Fannie Mae plans to stop this practice and sign new leases with tenants faced with foreclosure rather than eviction. The plan does not roll out until January, but in the meantime Fannie Mae has placed a freeze on all tenant evictions until the new plan can be rolled out.
We vote this as good practice as it should keep some renters in their homes and reduce the numbers of foreclosures hitting the San Diego MLS – in other words provide just a little bit of needed stability to the current real estate market.
Let us know what you think – go ahead and add your comment below ..
» Posted by Peter
