David Kirkpatrick

February 2, 2009

Fannie and Freddie push eviction halt to March

Filed under: Business, Politics — Tags: , , , , — David Kirkpatrick @ 4:36 pm

Good news for troubled mortgages. This gives home owners a little more breathing room to get things sorted out before losing their home. The two are also protecting renters who are living in foreclosed homes.

From the link:

Evictions on single-family properties that have been triggered by foreclosures have been further suspended until March, announced Fannie Mae and Freddie Mac on Friday.

At the same time, both entities, the largest holders of U.S. mortgages, are launching a new strategy to offer qualified owner-occupants and tenants’ leases so they can rent the properties on a month-to-month basis after foreclosure at market rates.

“Freddie Mac’s rental option is intended to help cushion the impact of foreclosure on families who own or rent homes with Freddie Mac-owned mortgages,” said Freddie Mac Chief Executive David Moffett.

This is the third extension of eviction suspensions. Both Fannie Mae and Freddie Mac started a program to suspend foreclosures evictions on Nov. 26. Those policies were set to expire on Jan. 9, but they were extended until Friday. A Freddie Mac spokesman declined to comment on whether the eviction restrictions would be extended past Feb. 28.

In another important development, the two mortgage entities are allowing renters in homes owned by Fannie Mae and Freddie Mac that have been foreclosed to remain there and enter into a month-to-month lease. It also allows troubled owner occupants who have been unable to obtain a modified mortgage to lease after foreclosure takes place.