Under a plan announced Friday, lenders Fannie Mae and Freddie Mac announced they are extending their suspensions of evictions of homeowners or renters due to foreclosure to February 28th 2009. Previously both Freddie and Fannie had suspended foreclosures that affected 20,0000 homeowners and 6300 owners and renters.Fannie and Freddie are also planning to expand rental options after default and announced a new 'rent to own mortgage program' for persons currently renting homes that are facing foreclosure.Eligible renters will be offered month to month leases, the companies said.
Additionally, Freedie Mac will continue to seek loan modifications to allow borrowers to retain ownership.
Banker Credit Suisse in December estimated that 8.1 million, or 16 percent of all mortgages, would be in foreclosure over the next four years without more lender or government interventions.
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