Freddie Mac Stops Foreclosure Sales Under Obama Program

Freddie Mac is suspending foreclosure sales on mortgages eligible for the Home Affordable Modification Program as part of the Obama Administration's Making Home Affordable plan. Previously, the company had suspended foreclosure sales on occupied properties through March 6, 2009. Freddie Mac will instruct its servicers not to make a foreclosure sale on a property eligible for the Home Affordable Modification program unless they completed their effort to contact the borrower and either the borrower did not respond or lacked the capacity or willingness to participate in the program or any other Freddie Mac workout program. Servicers are given broad authority to postpone foreclosure sales on a case-by-case basis when the servicers are working with borrowers to avoid foreclosure using any of Freddie Mac's workout options.