Renter Protection during Foreclosure

Feb 18, 2013

If you’re a renter in a Fannie Mae-owned home that goes into foreclosure, you may be eligible to continue renting the home under Fannie Mae’s Tenant-in-Place program. The program mirrors the protections of the Protecting Tenants at Foreclosure Act (PTFA). Under this law, valid tenants are permitted to remain in the residence as renters paying market-rate rent until the end of their lease term or, if the lease is a month-to-month lease, provided with at least 90 days of notice before the termination of their lease.

Likewise, Fannie Mae’s program allows renters to continue to lease the home for a period of time, providing relief from the foreclosure process on the home, and gives them time to transition to new housing.

In addition to remaining on their existing lease through the end of its term, valid tenants may be eligible for one of two Fannie Mae lease types—month-to-month or term leases at market-rate rent. “If the tenant states their intention to remain in the property as a tenant following foreclosure, we assign one of our local property management agents to meet with them and review terms specific to their situation,” explains Joe Fusco, director of customer account management in Fannie Mae’s Real Estate Asset Management division. Renters also may be eligible for financial assistance if they choose to relocate rather than remaining as a tenant, notes Fusco.

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While PFTA protects renters until the end of 2014, when it’s currently set to expire, there may be state or local laws that provide tenants with additional rights. And if you’re in a home owned by Fannie Mae you may be eligible for the Tenant-in-Place program.

To find out if you qualify for Tenant-in-Place and to obtain additional information, contact the Fannie Mae Resource Center at 1-800-2FANNIE (1-800-232-6643). If you have any questions about your legal rights, contact an attorney for assistance (to find attorneys in your area go to

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