Renters Not To Be Evicted After Foreclosure

If you have been diligently paying rent, there is no reason why you should bear the financial troubles of your landlord. Now, as Fannie Mae gains possession of the property you are renting, you will be allowed to stay and lease the home until it is sold to a new owner.

Over the past few months, the number of renters evicted due to foreclosure has reached 70,000. A big part of this number is tenants who have been paying rent regularly but were nevertheless forced out. If this alarming situation is to be put to stop, lawmakers and institutions other than the government-controlled Fannie Mae have to follow its track.

The government has been doing its share of protecting renters from blameless eviction. Just last month, the council of Los Angeles City agreed to propose a law that would prevent renters from being evicted by financial institutions from foreclosed apartments.

In the previous year, to protect the interest of renters, a law was passed by the House. New owners would be required to provide notice to renters 90 days prior to eviction. Unfortunately, the law did not pass the Senate.

At the moment, home renters in some states are not protected by the law. It is upon the jurisdiction of the finance companies whether renters would be evicted after foreclosure and in most cases, these helpless families find themselves in the streets. Advocates find this unjust. Renters are not to blame if mortgage is not paid properly by their landlord.

Because of the new policy by Fannie Mae, even deviant companies who refuse to manage repossessed properties are expected to be pressured to adopt the system as well. If this happens, renters will definitely be relieved of the worries they unnecessarily experience when their landlords face housing problems.

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• Freddie Mac Got $6.1 Billion to Curb Government Repo Homes
• Charlotte Foreclosure Auctions Might Soon Add a Commercial Property