Renters Need to Beware of Foreclosure Too

I read recently in the Washington Post that renters are bring affected by foreclosure too. At first glance, I thought, huh? Then I read the article and it made sense. Whether you rent an apartment in an apartment complex, or rent a house directly from a landlord, as a renter you can find yourself homeless from foreclosure. Remember, just because you are paying your rent to your landlord, it doesn't mean they are using these funds to make the mortgage payment on the unit or building they are renting to you. So, when the foreclosure monster comes knocking on your landlord's door, guess who can soon find themselves without a roof over their heads--you, the renter.


Fannie Mae to the rescue
Fannie Mae is instituting a new program in January for renters of foreclosed properties. Fannie Mae will either assist the renters with relocation costs or have the renter sign a lease with Fannie Mae until the building sells to a new owner. The details of these arrangements remain to be seen, but it is an avenue of hope for renters around the country.