I have been through an ordeal the past couple of months - rented a home that went into foreclosure - was taken back by the bank - was sold to Freddie Mac - who wants my family out of the house ASAP. They gave us three options - $3500 to move out in 30 days; $2500 to move out in 60 days; or continue to rent on a month-to-month basis with a NEW lease and new rental price, and their rules and be able to prove we are able to pay the agreed upon rent. I've rented a home for 33 years and never have defaulted or been late with rent. Which is more than I can say for some of these home owners who are being foreclosed upon. When reading through the renters rights laws in Virginia it says that the new owner has to honor the original lease (signed between myself and the former owners) or if the new owner can prove they want to occupy the house, give us 3 months notice. I called the law office representing Freddie Mac on another issue regarding the "eviction" notice I was served and she told me that Freddie Mac had the option to honor the lease or not, they chose not to. If this is the case, how does the so-called law protect renters at all? Renters are treated, in my opinion, as second-class citizens just because we can't afford to buy a home. I have been able to find a new home and plan to vacate the premises within the time constraint that Freddie Mac gave us as I am interested in the $3500 incentive. The community we live in have dozens of homes for sale and they are not moving. We, in good faith, and innocently signed a lease with the former owners not knowing they were being faced with foreclosure (as I am told, they have no obligation to tell us this). While they might not have a legal obligation, I feel they had a moral obligation. Whatever, it is what it is, but I still don't understand the law and how Freddie Mac can opt out of it. I just need to understand this better. Thanks.

You can find the text of the law here:

<enum>I</enum><header display-inline="yes-display-inline">Prevention of Mortgage Foreclosures</header> <section commented="no" display-inline="no-display-inline" id="HA9A13E87B3234F1A9980A2302441466D" section-type="subsequent-section"><enum>101.</enu

Scroll down to Title VII which deals with tenants. The law is very clear and I see NO exception for Freddie Mac. Tell the representative to provide you with a cite that allows Freddie Mac to opt out. It may be in another law or FHA ruling, but I doubt it.

Scott, thanks for your answer. I think the law is clear too. Also this is what I had been referring to:
http://www.virginiaforeclosureprevention.com/renters.asp

As it stands, we are moving out and taking advantage of the cash for keys (we need the cash)... but I didn't think I was wrong in assuming that we had to the end of our lease. Maybe Freddie Mac thinks because I'm a renter I'm stupid and will fall for their scare tactics. I am going to mention this to their lawyer when I call her back about another issues and ask if she can provide me with a opt out cite. Thanks so much for your help.

Let us know what the lawyer says.

But if you accept a cash for keys deal (and it sounds like a good deal) then you are voluntarily opting out.

I realize I'm opting out by taking the cash for keys and right now it does seem like a good option - we have to move anyway... we've found a house we like... I don't like the idea of renting month to month. I will let you know what the lawyer says. At this point I just want to know if they can do that. Maybe it will help someone else in my position in the future.