With hopes of giving the recently released loan modification rescue plan time to work, mortgage lenders Fannie Mae and Freddie Mac have suspended home foreclosures starting Wednesday November 26 through January 9. This is good news for struggling homeowners on the bring of losing their homes. Here’s how you qualify for a suspended foreclosure from Fannie Me or Freddie Mac:

– You must be at least 90 days late on home loan payments.

– You must live in the mortgaged home that you are having trouble paying for.

– You must be able to prove financial hardship.

– You must owe at least 90% of your home’s value.

Home Foreclosure

The idea is to lengthen mortgage repayment terms or lower interest rates so that monthly payments are no more than 38% of the borrower’s monthly household income. According to a CNN report, there are no specific numbers as far as how many loans may be affected by this plan to suspend foreclosures. But Fannie Mae reported recently that 1.7% of their mortgages are delinquent by more than 90 days. Estimates show that Fannie Mae has 18 million mortgages on its books which would mean that 300,000 mortgages may be eligible for suspended foreclosures.

Photo courtesy of respres