Fannie Mae, the large mortgage backing entity recently bailed out by the government, has made a smart financial move. They announced that they will be allowing the tenants living in foreclosed properties owned by fiscally irresponsible landlords to remain in place, as long as their rent remains current. Freddie Mac has not yet announced a similar move, but is expected to do so soon. A spokesman for Freddie Mac stated that they were working out the operational details of such a move. [CNN Money]
This move wasn’t just an attempt to be a good neighbor, however. The two giants are required to comply and allow tenants to stay in properties “where permissible” as part of the $700 billion bail out plan.
