Fannie Mae to Allow Those Who Rent to Stay in Foreclosures

Digested From "Fannie to Let Renters Remain in Foreclosures"
Washington Post (12/15/08) P. A2; by Zachary A. Goldfarb

Fannie Mae will institute a moratorium on evictions until Jan. 9 to assist residents living in foreclosed rental properties. After that date, the company either will present residents with a new lease agreement or provide relocation help. The decision came after New Haven Legal Assistance Association threatened to sue Fannie Mae to help those who rent, particularly those making on-time payments while owners entered foreclosure. New Haven Legal Assistance Association litigation director Shelley White hopes "this new policy by Fannie Mae will serve as a model to private lenders and state legislators considering actions to assist renters who are being immensely burdened by the foreclosure crisis." An estimated 4,000 people reside in rental homes foreclosed on by Fannie Mae.