Fannie Mae Helps Renters in Foreclosed Homes

Renters of Fannie Mae owned foreclosed homes across the country have been given an unexpected help from mortgage firm Fannie Mae. Renters have been given the option to stay and sign a new lease with Fannie Mae or to accept financial help from Fannie Mae and find another housing.

Fannie Mae and Freddie Mac have also previously announced they would extend their foreclosure suspension and eviction ban policy from the December deadline to January 31.

According to Fannie Mae chief operating officer Michael Williams, the policies aimed to lessen difficulties faced by families renting foreclosed houses and help maintain peaceful conditions in neighborhoods shattered by high rates of foreclosures.

Freddie Mac chief executive officer David M. Moffett has also previously said the suspension of foreclosures would avert the flow of foreclosed properties into the housing market and hopefully prop up home prices.

Fannie Mae and Freddie Mac hold about 50 percent of all outstanding mortgage loans in the country, which add up to about $10.6 trillion.

In addition, Citigroup has also expressed its support for new legislation being readied in Congress to help avert further foreclosures. It has also announced it would reach out to non-delinquent borrowers living in areas hard-hit by rising unemployment and dropping home prices to help them avoid conditions that lead to foreclosures. Currently, Citigroup owns $20 billion worth of non-delinquent mortgage loans across the country.

Congress has been readying two bills aimed at preventing further foreclosures. One bill would require the Treasury Department to allocate at least $40 billion to rescue troubled homeowners with loan modifications. The other would empower bankruptcy judges to order mortgage companies to undertake loan modifications for bankrupt borrowers. These two bills are expected to be sent immediately to the office of Barack Obama, who promised to prioritize help for struggling homeowners during his first weeks as president.

Related Posts:

• Foreclosed Homes Continue to Be Part of Fannie and Freddie
• Homes in Foreclosure to Increase, Fannie Mae CEO Says
• Fannie Mae, Freddie Mac Help Fund Program for Foreclosure Homes
• Partial Passing of Housing Rescue Bill
• Senate Reaches Compromise on Funding for Anti-Foreclosure Bill