Renters in Fannie Mae-owned properties may be able to stay in their homes
Fannie Mae Tenant-in-Place Rental Policy
To help minimize disruption, eligible renters who want to stay in a home that has been foreclosed can sign a month-to-month lease if the property is owned by Fannie Mae. The policy, which applies to properties owned by Fannie Mae, will help bring stability to communities affected by high foreclosure rates.
Eligible renters will be offered a new month-to-month lease with Fannie Mae and Fannie Mae will manage the properties through a real estate broker or a property management company. Renters may also be eligible for financial assistance if they desire to relocate.
Program criteria highlights
- To qualify, a renter must live in the property when it is acquired by Fannie Mae
- Any single-family property is eligible including two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing.
- The property must meet state laws and local code requirements for a rental property.
- Fannie Mae will not require security deposits.
- Under the Fannie Mae lease, the property may be marketed for sale and if sold the property would be transferred to the new owner subject to the lease
- Rental rates under the new leases will be comparable to other rents in the same market and subject to any legal rent control restrictions.
Protecting Tenants at Foreclosure Act of 2009 (PTFA)
In addition, pursuant to the Protecting Tenants at Foreclosure Act of 2009 (“PTFA”), bona fide tenants after foreclosure sale may be entitled to remain in the premises under their existing lease or tenancy. If you are a renter in a Fannie Mae owned property and the property has been foreclosed upon, you should have received the Fannie Mae Knowing Your Options document that sets forth information regarding some of your options. Please contact the property manager or broker listed in the document to provide information about your lease or tenancy. Bona fide tenants may also choose to sign month-to-month leases with Fannie Mae pursuant to the rental policy. Contact the property listing broker or the Fannie Mae Resource Center at 1-800-732-6643 for more information.
If you have questions concerning your rights as a tenant under PTFA or other state or federal laws, please seek the advice of an attorney. Information on legal services in your area is available through the American Bar Association at www.findlegalhelp.org.
Fannie Mae Tenant-in-Place Rental Policy FAQs 
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Deed-for-LeaseTM
Fannie Mae’s Deed-for-Lease Program (D4L), allows qualified borrowers (or their tenants) to execute a lease of up to 12 months in conjunction with their deed-in-lieu of foreclosure, allowing them to remain in their home as a renter. Borrowers interested in exploring this option should discuss it with their mortgage servicer. To qualify both the property and borrower (or tenant of the borrower) must meet certain general qualifications* such as:
Occupant Eligibility:
- Income is sufficient to cover rental payments of not more than 31 percent of gross income. If the current market rent is greater than 31 percent of the occupant’s monthly gross income, a lease will not be offered.
- Inspection of the property indicates that the occupants have been keeping the property in good condition.
- The number of occupants is appropriate for the home and in compliance with local laws and homeowner association rules.
- If pets are present, renter’s insurance is obtained, if required.
- The occupants signing the lease must agree to a credit review and all occupants over the age of 18 must have an acceptable background check, including receiving clearance from the Office of Foreign Assets Control (“OFAC”).
- There are no signs or reports of illegal activities conducted at the property.
- The property is to be used as a primary residence.
Property Eligibility:
- There are no zoning or homeowner’s association (HOA) rental limitations that would prohibit a lease.
- Repairs required to make the property habitable are deemed to be in an acceptable amount based on the property value.
- The property is in compliance with local rules and laws or can be brought into compliance within 30 days.
- The property is not within a target area for any corporate, government or community neighborhood stabilization plan which may need the property as part of the plan for purposes other than residential.
- The market rental income is anticipated to cover ongoing maintenance and management costs.
Please note that consideration for a D4L is initiated by servicers. If you are a borrower interested in pursuing a D4L please contact your servicer.
For answers to frequently asked questions please see Deed for Lease (D4L) – Frequently Asked Questions. Servicers can find additional information at www.efanniemae.com/sf/servicing/d4l/.