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Rental Programs

If you’re currently living in a home that you no longer own because it was foreclosed, you may be able to avoid eviction and stay in the property until it’s sold. The Fannie Mae Former Owner Rental Program was created to help former homeowners in this situation who need more time and options to make their next move.

"How can I avoid eviction from my
foreclosed home?"

Fannie Mae’s Former Owner Rental Program provides a month-to-month rental option for former homeowners still living in a property that was foreclosed. Former owners can rent the property (at market rate) while it’s being marketed for sale to new owners.

To be considered for the program:

  • The former owner must currently live in the home.
  • The former owner and occupants must cooperate and provide required information to the identified Fannie Mae real estate agent in a timely manner.
  • The home must meet certain conditions of safety and habitability as determined by Fannie Mae.

Former homeowners who are approved for the Former Owner Rental Program benefit by:

  • Avoiding an eviction from the home
  • Remaining in the property on a month-to-month basis, allowing additional time to plan for relocation

The process for the Former Owner Rental Program includes:

  • Initial Notice – In most states, once your former property has foreclosed, a real estate agent will post a Know Your Options (KYO) flyer on the door of the home and attempt to contact you.
  • Prompt Response – You must promptly respond to the agent to indicate your interest in renting the property.
  • Additional Information Request – Once you express your interest, the agent will provide a Rent to Former Owner document package via email or in person.
  • Return of Required Information – You must complete and promptly return the required information. If documents aren’t received within the allotted timeframe, you may be disqualified from the program.
  • Property Evaluation – The property’s overall condition and repair needs will be inspected to determine if it qualifies for the program. The property must meet certain requirements, as determined by Fannie Mae, and be safe to live in to be approved.
  • Month-to-Month Lease – If the property qualifies, the previous homeowner will be offered a month-to-month lease while the home is marketed and sold.

The process to rent your former home is time sensitive and depends on the eligibility of the property. Once the home has been foreclosed, follow these steps to be considered for the Former Owner Rental Program:

Step 1

Watch for a Know Your Options notice – The real estate agent assigned to sell the home will post a flyer on the door with your options and their contact information.

Step 2

Contact the real estate agent immediately – You’ll need to promptly contact the agent and express your interest in renting the home.

Step 3

Look for additional, time-sensitive information from the agent – Once you express interest in renting the home, you’ll receive a Rent to Former Owner document package via email or in person.

Step 4

Complete and return required information promptly – Provide the completed package to the agent promptly. If documents aren’t received within the allotted timeframe, you may be disqualified from the program.

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