There’s no need to worry about being turned out of rental homes anytime soon. According to policies by Fannie Mae, tenants of rental homes under foreclosure will be allowed to stay, if they’re current on rent payments.
Many tenants are surprised when they receive eviction notices even if they’ve continued paying rent. Some landlords, for various reasons, do not pay the mortgage. The homes they own then fall into foreclosure.
Rental foreclosure is a curse for responsible tenants. They get saddled with the trouble of moving out, even if they aren’t the ones who neglected their payments to lenders.
Tenants of Fannie Mae-backed homes that fell into foreclosure can now sign a new lease even if the property is up for sale. You can use that time to find another dwelling and save up on moving costs and deposits. Fannie will also help you with the cost of moving, as an alternative.
Here are some helpful tips to avoid becoming a victim of rental foreclosure:
- Review rental laws in your state. Foreclosure varies by state, so it’s best to do your homework.
- Call the lender to find out what options you have.
- Find out how long the foreclosure process will take, so you can prepare.
- Seek help from non-profit housing counseling agencies.
- Check district court records to find out if the landlord previously had financial distress or faced home foreclosure.
Sign up on the box at the right for assistance with home or rental foreclosure.
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[...] Staying even if your landlord is in foreclosure – If you suspect or know that your landlord is in foreclosure, contact your local government offices immediately to find out how you can stay for a few more months while looking for a new place. [...]
Posted on February 25th, 2010 at 1:10 am