Tenant Protection Urged for Renters in Foreclosure Properties
Evelyn Colon, a resident of Hartford, Connecticut, is seeking the help of the Greater Hartford Legal Aid (GHLA) from being evicted from her rental home which is being shutdown due to foreclosures. GHLA is a non-profit organization providing legal help to low-income families and individuals.
They are banking on a new law that is part of the $700 billion bailout bill, or the Troubled Asset Recovery Program passed by Congress, protecting tenants in good standing from being evicted in homes being repossessed due to foreclosures.
Responding to this incident, U.S. Senator Christopher Dodd, the chairman of the Senate Banking Committee has requested in writing for the immediate action of the Federal Housing Finance Agency in supporting tenants who are current in the rental payments and be protected from eviction from foreclosed homes.
The new law is applicable to mortgages owned by federal agencies, particularly Fannie Mae and Freddie Mac, two GSEâ??s (Government Sponsored Enterprises) recently placed under conservatorship by the administration in response to the brewing crisis on crisis on foreclosures. These two mortgage giants own or guarantee half of the nationâ??s residential mortgages, including the house where Evelyn Colon is renting in.
Colon has been a tenant of good standing with up to date payments in rent and has a valid lease on her rented home. Under the provision of the new law, tenants of good standing should be protected from eviction from their rented homes that are in trouble with foreclosures.
In a response to the request by Senator Dodd, Fannie Mae stated that it is currently working on this case by Colon and will work out a solution for her to stay in the apartment. It is also working now to help other tenants in the same situation. They are currently reviewing their overall policies regarding renters in foreclosure homes, and aims to keep as many tenants and renters in their apartments as possible.
