Freddie Extends Katrina Moratorium

Freddie Mac is extending its foreclosure moratorium in many Gulf Coast communities for another three months, but starting March 1, servicers can initiate foreclosures in 65 counties and parishes that sustained only minimal storm damage in hurricanes Katrina and Rita.Freddie's current moratorium, which covers 120 counties and parishes in Alabama, Louisiana, Mississippi, and Texas, expires Feb. 28. "We are replacing our one-size-fits-all approach," Freddie senior vice president Janet Eakes said. "This announcement builds on our commitment and our servicers' commitment to continue to provide relief for borrowers in the worst disaster areas, while resuming normal business operations elsewhere." Freddie is extending the moratorium until May 31 in 21 counties and parishes with the most severe damage. In another 34 counties and parishes with less-severe damages, servicers must seek Freddie's approval to start a foreclosure. Freddie Mac can be found online at http://www.freddiemac.com.