Determining Eligibility

• According to Fannie Mae, real estate agents and property managers will contact and advise tenants if they are dwelling in a property owned by Fannie Mae that has been foreclosed. Tenants should receive a "Knowing Your Options" flyer containing important information and contact details.
  
  

Continuation Under Existing Lease

• Tenants who would like to stay in their property under the terms of their existing lease may be protected under Protecting Tenants at Foreclosure Act or other laws. Such persons should contact their real estate broker or property manager, as specified in the "Knowing Your Options" flyer they received.
  
  

Executing New Lease

• Alternatively, tenants may sign a new month-to-month lease with Fannie Mae. To qualify, the tenant must have lived in the unit at the time the property was foreclosed. Additionally, Fannie Mae may subject the tenant to a credit and background check, although it will not inquire about the tenant's payment history or require an additional deposit.
  
  

New Lease Caveats

• Under the new lease option, however, tenants may be subject to new rent, and the property must satisfy all state and local requirements applicable to rental properties. Fannie Mae represents that rental rates under new leases will be "comparable to" the old rents and subject to any controls the tenant was previously eligible for prior to the foreclosure.