REO Rental Initiative
The REO Rental Initiative is a temporary rental initiative under which qualified, former owner-occupants and tenants will be offered an option to lease properties in which they reside that have been acquired by Freddie Mac as a result of foreclosure.
Servicers are not required to contact occupants or otherwise take actions with regard to the rental initiative. Our assigned real estate broker will contact occupants shortly after the conclusion of a foreclosure action, and a property manager and/or eviction attorney will make subsequent contacts.
Servicers are reminded that, in accordance with Chapter 70.16 of the Single-Family Seller/Servicer Guide, they must maintain all applicable property insurance policies on the property until the Servicer has received a Property Condition Certificate (PCC) indicating the property is vacant.
About the Initiative
To quality for the month-to-month rental option, the property must be in good condition, meet all state laws and local code requirements for rental properties, and be free of all environmental hazards.
Qualified occupants must:
- Demonstrate the ability to pay the market rent
- Allow an inspector to enter and inspect the property
- Sign a separate lease agreement
- Sign a property condition disclosure at the time of the inspection
- Allow future showings of the property to prospective buyers and real estate agents
Freddie Mac will offer all occupants the option of accepting relocation assistance if they prefer to vacate the property. Under the terms of a “cash for keys” agreement, occupants will receive a cash payment if they vacate the home by the date specified in the agreement and leave the home in “broom-cleaned” condition, free of personal belongings and debris.