Freddie Mac to rent foreclosed homes

January 30, 2009 10:18:24 PM PST
Mortgage lender Freddie Mac is taking unprecedented steps to help homeowners and renters temporarily stay in foreclosed homes. The program will let qualified former owners or renters rent back the property. But this move is only a drop in the foreclosure crisis bucket.

Foreclosures were up 81-percent last year from the year before. Mortgage lender Freddie Mac is trying to ease the pain of eviction by letting qualified former owners and renters lease the property month-to-month.

But only an estimated 8,600 families will be helped nationwide. Brenda Brennan's is not one of them.

"That's just from the sheriff's office. That's the move out order," said Brennan.

Brennan and her 6-year-old daughter, Brooklyn, have lived in their Concord home for a year-and-a-half.

Brooklyn's dad was paying the rent -- $2,450 a month. But the house went into foreclosure, now Deutsche Bank owns it, and it wants Brennan and her daughter out.

"I've packed my DVD's, and I've packed up other stuff," said Brooklyn.

Brennan believes she's been illegally denied her day in court, but she's unemployed and powerless to fight a move-out order that gave her 10 days to pack up.

"I feel betrayed by, not the homeowners because however they lost the home, I don't know. I felt betrayed by this bank," said Brennan.

Congresswoman Barbara Lee (D) of Oakland voted for the bailout package last year that included $100 billion to prevent foreclosures and she says the stimulus package also addresses foreclosures by creating jobs.

"Personally I've asked for a moratorium on foreclosures and I think we have to have bankruptcy reform. And that's the only way we are ever really going to begin to solve this in a very real way," said Rep. Lee.

Freddie Mac says it hopes the rent-back program will be in full swing by the end of February.