Posted by Jason Donn on January 31, 2009 at 2:33pm
Fannie Mae announced Tuesday that it would allow qualified renters of foreclosed properties owned by a government-controlled mortgage company to stay in their homes.Under the National Real Estate Owned (REO) Rental Policy, renters of homes acquired by Fannie Mae will be offered a new monthly lease at market-rate rent or if they desire, financial aid to help them move.The properties must meet state and local building and safety codes.Fannie Mae also said it will hire real estate practitioners or property management companies to manage the properties while the units are for sale.Jason Donn
Jason, i was on this call. Here is the fine line here. IF the FANNIE Broker is in a state where a separate license is required to act as a RENTAL agent, that broker will be PASSED OVER, and the listing given to another broker who has the capability of doing the management. FANNIE was very clear that the property management (Rental Management) CANNOT be sub let out to another company, but must be done by the listing broker. This puts a crimp in folks who are in states where a separate license is required.
Next and more importantly, how dumb can dumb be. The month to month goes with the sale, hence when the property is sold, the lease goes to the new buyer. There is NO requirement at FANNIE that the renters leave prior to closing. This will be a big headache to owner occupants looking to purchase. I have it from a mortgage friend that those looking to finance owner occupied are OK, since a month to month lease assumes that the renter is leaving. BIG ASSUMPTION. Fannie estimates that only 3-5% of their properties will have renters, but given their large footprint, that may be a lot of homes. I just see a lot of issues with this down the road.
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Next and more importantly, how dumb can dumb be. The month to month goes with the sale, hence when the property is sold, the lease goes to the new buyer. There is NO requirement at FANNIE that the renters leave prior to closing. This will be a big headache to owner occupants looking to purchase. I have it from a mortgage friend that those looking to finance owner occupied are OK, since a month to month lease assumes that the renter is leaving. BIG ASSUMPTION. Fannie estimates that only 3-5% of their properties will have renters, but given their large footprint, that may be a lot of homes. I just see a lot of issues with this down the road.