The WSJ reported today that if you’re a tenant living in a house that’s mortgage is foreclosed upon, you might be able to stay. It’ll all depend on who ended up with the property. Beginning January 9, 2009 Fannie Mae will allow tenants to sign leases for foreclosed upon houses in which they live. While this is a good idea, it affects a small number of people nationwide, perhaps 4,000.
Other owners of foreclosed upon houses, such as publicly traded banks, may indeed vacate the premise to aide in selling it. Rising tides raise all ships, and an improved national economy should decrease the foreclosure rate, which is at record highs of some 1 in 20 mortgages. So, things will probably get worse before they get better.