Fannie Mae-No Politics (FNMA)

[BlackJack1963]

THE NEW REAL
ESTATE NORMAL
Why some lenders are letting people stay in their foreclosed homes
March 04, 2012

(NATIONAL) -- Just a year ago who would have thought it possible that lenders would foreclose on a home and then let the homeowner stay in the residence, even sometimes paying the taxes on the home?

Such are the new “harsh realities of the real estate market,” where some lenders are increasingly likely to allow defaulting owners to remain in their homes because the costs associated with getting them out may exceed the diminishing value of the properties, according to a new report in the New York Times here

In normal times a lender would get the homeowner out after foreclosure then cover the cost of maintenance, upkeep and property taxes by just reselling the property.

But with housing prices at rock bottom these days, the banks often cannot recoup their expenses that way.