Freddie Mac's Rental Plan for Victims of Foreclosure

• March 6th 2009

by Mark Wellborn

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Freddie Mac launched the REO Rental Initiative yesterday that gives qualified tenants and former owners the option to lease their foreclosed properties on a month-to-month basis.

In addition to the program, the troubled mortgage giant said all eviction actions will be suspended until April 1 so that current occupants have time to learn about the ways the new program could help them.

In order to be eligible for the month-to-month lease, the tenant or former owner must live at the property and show they have income to pay the rental rate established by a national property management company. Also, HomeSteps, Freddie Mac’s national real estate unit, will be allowed to show the home to potential buyers during the rental period, as it will be marketed for sale.

From the Freddie Mac announcement:

“Freddie Mac’s REO Rental Initiative can help ease a foreclosure’s impact by giving renters and former owners more time to determine what options are best for them and their families. At the same time, the REO Rental Initiative helps stabilize property values and local communities by keeping homes occupied and less vulnerable to vandalism,” said Ingrid Beckles, Senior Vice President, Default Asset Management.

For more information about the program, visit the Freddie Mac homepage here.

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/freddie_macs_rental_plan_for_victims_of_foreclosure/623.