The Right to Rent Act of 2010

• The Right to Rent Act of 2010 was introduced to the 111th Congress and was designed to allow families of moderate-value homes facing foreclosure to remain in their homes as renters for up to five years. However, this bill never passed by Congress and was erased from the books as of 2011.
  
  

Banks as Landlords

• A bank may make an exception and opt to rent out a foreclosed property on a short-term basis (usually no longer than six months) until it sells. The management is usually delegated to an attorney, real-estate agent or property management company. Banks typically evade the expense of doing necessary repairs as well as general maintenance on these foreclosed properties. According to Geoff Smith, vice president of the Woodstock Institute and author of several reports on foreclosure, "They own properties, but they don't really want to invest."
  
  

"Cash for Keys"

• Major lenders such as Bank of America now sometimes employ a "cash for keys" policy, in which they offer tenants who face eviction due to the landlord's foreclosure a payout of $1,000 to $2,000, to vacate within four weeks. Tenants on Section 8, which is federally subsidized housing, are exempt from eviction in the event of foreclosure. However, many Section 8 renters accept the immediate cash payouts to vacate the premises.
  
  

National REO Policy

• Fannie Mae announced a National REO Rental Policy, as of 2009, which allows eligible renters to stay in their homes in the event that their landlord is foreclosed on. Renters would be able to stay in their homes for up to five years. Renters would be charged a fair-market rent under a new lease. For more information, call The Fannie Mae Resource Center toll free at 1-800-732-6643.