Last December, Fannie Mae added an option that allows former owners of foreclosed homes the possibility of remaining in the property as a tenant, making monthly rental payments at fair market rent. Relocation assistance and renting are both alternatives to eviction for former owners who occupy following foreclosure.What You Need to Know
If the property is occupied by the former owner, the listing agent will notify the former owner about the possibility of renting the home and the home must qualify for this opportunity. Eligible homes must meet all applicable health and safety building codes or those that can be brought into suitable condition within a reasonable amount of time and expense, as determined solely by Fannie Mae.
The former owner must:
- Complete the required Former Owner Property Questionnaire and Property Condition Form and return it within 3 business days.
- Allow an inspector to enter and inspect the home.
- Sign a new Fannie Mae month-to-month lease with the assigned Property Management Company when eligibility confirmed.
- Cooperate with the marketing activities directed by the assigned listing agent. This includes allowing the home to be shown to prospective buyers and real estate agents, keeping the home clean and safe, and meeting state and local code requirements.
Note: This program excludes reverse mortgage (HECM) properties.
