I don't think the banks want the legal problems of becoming landlords. I think its one of the reasons they don't collect rent on tenant-occupied properties.

Who is going to decide how much the monthly rent should be?

Probably the agent. Or the bank. Most likely the bank.

They won't have a choice if they forclose on a tenant occupied property with a valid arms lenght lease (at a fair market rent) in place. The law that went into effect May 20 allows tenants to stay 90 days minimum or the length of the lease which ever is longer so long as they continue to pay rent to the lender. That is why companies like Tenant Access are ramping up to manage the properties they expect to have to handle and one reason for the delay in a lot of foreclosures.

Let's just hope that they ramp up fast because I sure as hell don't want to become a property manager for the banks. That's a whole different sector of Real Estate. If the disgruntled homeowner that lost their home becomes the tenant, then I imagine they may become a PITA tenant that we will have to deal with! I can see it now...
No thank you!

This is going to get crazy. If banks don't want to do repairs, etc. to get their money out of a house and sell as is, I don't see banks getting excited about putting a house in inhabitable condition to rent it. If the owner stays, I'm sure they will want deferred maintenance done and have a laundry list of items they would now like repaired by the the new owner ( bank ) and someone to come mow the lawn that is no longer their problem. Who is going to do this property management? Is that the new "cheese"? There are a lot of RE companies that don't do property management and don't want to so even if an agent decides to go down this path it could mean an office change. ....but wait!!!! This doesn't apply because they were announcing the recession is over on the news this week! WHEW!!!

This is not about the homeowner becoming a tenant at this point the law passed in May is only for valid tenants with a valid lease. That is unless they change the law to allow for renting to a former homeowner.

It was my understanding that only Freddie and Fannie had property management departments in place to handle the foreclosure of their properties that are tenant-occupied.

Does anyone know where I can read about the law that took place in May?

That would be Senate Bill 896.