Interesting article from Realty Times on renters in REO properties.

I think the policy still needs refinement - especially for the prospective buyers. I imagine it wouldn't feel good to close escrow on a tenant occupied property, especially when the new owner has no security deposit.

However I think this is the right policy to prevent neighborhood blight. Empty houses do not help anyone and they lead to deterioration of neighborhoods. By allowing tenants to stay in properties and employing local property management companies to manage these properties, Fannie is helping the recovery.  It also enables local property management companies to increase business.

This presents a great opportunity for those of you who have started providing property management services.