Fannie Mae and Freddie Mac will both again extend their suspensions of foreclosure evictions on properties with mortgages the two companies own, this time through February 28, 2009.
Freddie Mac also announced it would begin offering an REO Rental Option similar to Fannie Mae’s renter program, but the Freddie program will be open to owner-occupants, as well as renters living in foreclosed homes.

It is the second time that the two companies have extended their moratoriums since instituting them in November.
Freddie Mac CEO David Moffett said, “First and foremost, Freddie Mac’s REO Rental Option is intended to help cushion the impact of foreclosure on families who own or rent homes with Freddie Mac-owned mortgages. At the same time keeping foreclosed properties occupied and in better repair will support local property values and promote a faster recovery in the housing market.”
Leases will be offered to current renters on a month-by-month basis and will pay market rent as determined by the property management firm Freddie Mac contracts to manage the program, or their previous rent amount, whichever is less. Former owner-occupants will be offered leases and will be charged market rent, if owners can show proof they can afford the payments.
Freddie Mac said former owner-occupants that begin renting may have the opportunity to retain ownership of the home by reinstating their mortgage with modified terms.
Ingrid Beckles, Freddie Mac SVP of default asset management, “In about half of all foreclosure sales there is no conversation between the borrower and the mortgage servicer about workouts. Before starting the eviction process, we want to ensure there is one last effort to achieve a workout.”