chicago-condos & Chicago Real Estate & Chicago Mortgage pcherry on 30 Jan 2009 03:26 pm

Freddie Mac Moves To Rent Foreclosed Properties

January 30, 2009 - Taking a page from Fannie Mae’s new policy, Freddie Mac announced that they will begin letting some former homeowners rent back their foreclosed houses and condos. The move isn’t altruistic, but an effort to keep the homes from being vacant and possibly vandalized or becoming run down. The new program will also allow those who are currently renting to remain in their condo or home even if their landlord faces foreclosure, according to an AP News press release.

David Moffett, Chief Executive with Freddie Mac stated in the article that, “Keeping foreclosed properties occupied and in better repair will support local property values and promote a faster recovery in the housing market.”

In Illinois, foreclosures in 2008 rose nearly 55% from 2007 foreclosures. The country as a whole experienced an 81% increase in foreclosures. The Chicago market area showed a 53.4% increase from 2007 to 2008, with 77,226 housing units facing foreclosure, according to RealtyTrac.

Right now some 8,500 residences in the nation, including some parcels of Chicago real estate, are affected by Freddie Mac foreclosures. To be eligible to stay in a foreclosed condo or home, residents must first provide proof that they can pay the rent. Also, the mortgage company will review loans to see if any are able to be modified and reinstated.

And for those Condos In Chicago as well as others across the U.S. that are facing foreclosure proceedings and possible eviction, Freddie Mac and Fannie Mae are standing by their promise to halt evictions until March.

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