So many renters of homes find themselves evicted or in limbo when the house they rent goes into foreclosure through no fault of their own.

Fannie Mae is in the process of devising a new national policy that applies to non-owner-occupied homes. It will halt evictions and allow tenants to remain in their rental homes even though the properties they are renting are in foreclosure.

The policy, expected to be effective 01/09/08, will allow Fannie personnel to invite tenants to sign new leases with Fannie.  It will also allow personnel to offer finanical assistance to tenants for relocation expenses. 

As is often the case, when one of the two housing GSE’s makes such a policy, it often puts pressure on private mortgage lenders to follow suit. 

I’ll blog more on this as the details are disclosed.