Comments on: Fannie Lets Foreclosed Renters Stay

By: MyJourney

MyJourney — Wed, 17 Dec 2008 03:01:32 +0000

This is a Gov’t Sponsored Entity it is not doing anything to be “good.” Rather, it is doing it because it is a way to get some cash flow!

It kind of worries me, short term I think it is a great thing, but in the long term doesn’t anyone worry that for all intents and purposes the gov’t is a landlord?

By: Miss M

Miss M — Tue, 16 Dec 2008 05:37:45 +0000

Renters were unintended victims in this crisis. Typically leases survive transfers of ownership, it’s a quirk of the foreclosure laws that allows them to be tossed out. Also it may be in the lender’s interest to keep the home as a rental for awhile, wait for the market to improve. In some neighborhoods you can’t sell a house for anything, might as well rent it for a few bucks.

By: Aman

Aman — Tue, 16 Dec 2008 04:40:48 +0000

with all dismal news we hear today about the financial turmoil, its sort of nice to read that less people will be forced out of homes, especially during the holiday season.

I dont want to sound like a negative person, but many people did make mistakes getting into homes they surly could not afford and used unwise financial methods (spending more than they should have)…but regardless, instead of making matters more worse, Fannie Mae is taking one good step in finding a middle road to take during these hard times.

By: Michael

Michael — Tue, 16 Dec 2008 00:58:30 +0000

This is pretty unorthodox but it really makes a lot of sense. It’s going to have a lot of unintended consequences because FM isn’t and can’t be a landlord but anything to keep people in their homes even for a few months without costing taxpayers extra money seems like a good idea right now.

By: carla

carla — Tue, 16 Dec 2008 00:36:24 +0000

I am so glad that our landlord owns the house we rent. I have been reading heartbreaking stores about people getting thrown out of their rented homes and not getting their security deposit to boot. FM is doing something right for a change – its about time.

By: Renter

Renter — Mon, 15 Dec 2008 22:09:04 +0000

I think FM is doing the right thing for a change.

I am renting an apartment and recently had the pleasure of the sheriff serving an eviction notice, although we never did anything wrong. My landlord had not paid the condo dues and the association was suing to evict him (and us) so that they could rent out the place to recoup their losses. At the moment it looks like the landlord paid up and the eviction notice will be thrown out, but its still no fun. Turns out the landlord is in way over his head and I have very low expectations for recovering my security deposit.

This was supposed to be a short term rental while we house hunt for a place to buy in the new city we recently moved to, but has turned out into a real hassle. Not only are we swamped with court orders and have the uncertainty of the being evicted, we are stuck with the rental agreement – i.e. the landlord is getting us in a big mess while we really can’t do anything about it.

So, if I ever rent again, in particular from an individual landlord (guy renting out a condo) I will insist on the following:
a.) proof that mortgage and condo fees are in good standing and guarantee that he must share foreclosure and related notices with us within 1 week
b.) ability for us (not landlord) to quit rental contract with no notice if he goes into foreclosure or we get some other eviction notice
c.) 3rd party escrow management of the security deposit
d.) ability to withhold $1,000 of rent for every instance that I am ordered to appear in court for landlord foreclosure and other landlord-caused proceedings

A & B I will not back down from – and a “good” landlord will have nothing to lose. C I would really like – it is law in many states, but not required in my state so may be a tough sell and administrative hassle. D would be tough but sorely needed given how time consuming this whole crap is on the innocent renter.