Tenants staying in foreclosed homes?

[yrush2000]

I was talking to someone today and they were telling me that Fannie Mae was passing a law that tenants will not be evicted when the homes foreclose. 
Now I know Fannie Mae and Freddie Mac are largest, but still most investment properties are non-comforming loans and not in there hands to my knowledge..

Any insight??

[kel]

You know, I too remember hearing something about this but can't for the life of me remember if I read it online or heard a blurb on the news. Hopefully, someone here will have some more insight on the topic.

[hassansr]

It depends on the municipality and the lender. Some lenders are starting to pull back on foreclosing cause of the affect that it is having on housing values (decreasing the values of other properties that they have already taken back).