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California Foreclosures Jeopardize Renters as Banks Seize Homes

Bloomberg.com-- Laura Hecox was baffled when an officer from the San Diego County sheriff’s department came to her home in February and said she was being evicted. She hadn’t missed a rent payment on her four-bedroom house since moving there a year-and-a-half earlier.

...Fannie Mae and Freddie Mac, the mortgage-finance companies under federal control, have formal policies for renting to tenants. Starting in January, the companies hired property managers to reach out to renters and offer them new leases at market rates.

Management fees equal about 10 percent of a renter’s monthly payments, said Norman Miller, professor of real estate at the University of San Diego. (Full Story)