The New York Times reports that government sponsored enterprise Fannie Mae announced it will no longer seek to evict renters from properties on which it forecloses.
The issue has been one of hot debate here in Michigan, with Genessee County’s Sheriff issuing an order to cease all renter evictions associated with foreclosure.
The NYT story reports that as many as 70,000 renters have faced eviction from homes that have been foreclosed.
Last month, both Fannie Mae and Freddie Mac, the other government-controlled mortgage giant, temporarily suspended foreclosures and evictions until early January. Fannie Mae will now offer renters in foreclosed properties month-to-month leases until the property is resold. A company representative said program details were still being worked out.
“While it may be sometimes tougher for us to sell a property when people are in it, we understand that lots of people are in tough situations right now,” said Chuck Greener, a Fannie Mae spokesman. “If a renter wants to stay in their home, we’ll make that happen. And if they want to move out, in many cases we’ll help them pay for the move.”
Other companies continue to evict renters from foreclosed properties, the NYT reports.
The Michigan state house earlier this month passed a bill to force property owners to inform renters that the property owner is 90 days behind in mortgage payments. The bill has not been taken up by the state senate.
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