Occupants of Freddie Mac Foreclosed Homes
Are you currently occupying one of Freddie Mac’s foreclosed homes? If so, Freddie Mac provides options to occupants of Freddie Mac homes that may allow them to avoid eviction.
Shortly after Freddie Mac purchases the home at foreclosure, occupants will receive a letter entitled You Have Options that explains the different opportunities they may have to stay in the home under an existing lease as a bona fide tenant or accept financial assistance (Cash-for-Keys) to help them relocate. The You Have Options letter also provides the occupant with contact information for the real estate agent listing the home if the occupant is interested in pursuing one of these options. It is important that all information requested by Freddie Mac be provided as completely and timely as possible.
Continuation of Prior Lease (Tenant Occupants Only)
Under some federal and state laws, tenants may have the option to stay in the home under their former lease while Freddie Mac markets and sells the home. Freddie Mac complies with all applicable landlord-tenant laws, including those that would allow an eligible tenant to stay until the expiration of their old lease. Tenants that receive rental assistance, such as Section 8 assistance rent control coverage, may also be eligible to continue to rent the home under their existing lease. After the tenant has received the You Have Options letter, Freddie Mac’s attorney will contact the tenant to request a copy of the tenant’s lease. The tenant will need to provide Freddie Mac’s attorney a copy of their prior lease to determine if it qualifies for this option.
Cash-for-Keys Assistance (Tenants and Former Borrowers)
If an occupant chooses to voluntarily vacate the home, Freddie Mac will offer financial assistance (commonly referred to as Cash-for-Keys) to help them move and relocate from the home. Occupants accepting Cash-for-Keys must leave the home by a specified date, leave the home in broom-swept condition and free of personal belongings or debris as well as comply with the other terms and conditions of the Cash-for-Keys agreement.
The options offered by Freddie Mac can help ease a foreclosure's impact by giving occupants time to determine what option is best for them and their families. We are committed to these efforts and the added benefit of stabilizing property values and local communities by keeping homes occupied and maintained.