Fannie Mae, Freddie Mac suspend foreclosure sales

"Freddie Mac is on track to help three out of every five troubled borrowers with Freddie Mac-owned loans avoid foreclosure this year," Freddie Mac Chief Executive David Moffett said in a statement. "Today's announcement builds on this momentum and provides a new measure of certainty to many of these families during the holidays."


The government-controlled mortgage companies said they are ordering a national network of mortgage servicers and foreclosure attorneys to prohibit the sale of foreclosed homes for single-family and two- to four-unit properties with mortgages owned by the two entities.

Freddie Mac's Moffett added he expects that lenders servicing Freddie Mac-owned mortgages will work with borrowers to help people stay in their homes. Freddie Mac plans to approve settlements for mortgage payments with roughly 84,000 homeowners; however, 140,000 mortgages are delinquent on Freddie Mac-owned mortgages.


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