Renting A Fannie Mae Held Property? No Worry About Evictions

Here is another great example of how a feel good policy from our  government will continue to hurt the housing market.

Fannie Mae is now signing leases for those living in foreclosed properties they hold. The leases will then be binding on whomever is buying the property out of foreclosure. It sounds like a noble endeavor not putting families on the street.

But most families looking to buy a foreclosed upon home wants to live there, not be a landlord. While investors are a big part of the equation, they also tend to like to choose their tenants, not a faceless bureaucrat in Washington. The landlord will have to deal with the tenant after acquiring the property.

So what happens.

• The family looking to buy the property takes a pass on it as they can not live there immediately.
• Quality landlords will pass on it as they have no relationship with the tenants and it is a risk.
• The property sells for less than it could have, or does not sell at all, and continues to depress property values.

Sometimes doing the right thing seems like the tough thing to do, but it helps the community in the long run.

Mortgage finance company Fannie Mae said Tuesday it has adopted a policy allowing renters to remain in their homes even if their landlord enters foreclosure.

The policy will allow renters living in foreclosed properties to sign new leases with Fannie while the property is up for sale.

Sibling mortgage financier Freddie Mac, based in McLean, Va., is working on a similar policy, company spokesman Brad German said. via  Fosters.

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