Foreclosures

Mortgage finance company Fannie Mae said Tuesday that it had adopted a policy allowing renters to remain in their homes even if their landlords entered foreclosure. The policy would allow residents of about 4,000 properties to sign new leases with Fannie Mae while the properties are up for sale. Michael Williams, Fannie Mae's chief operating officer, said the change should "help bring a measure of stability to communities impacted by high foreclosure rates."

After Jose Hernandez's family fell behind on payments for the family home in Pacoima, he was approached by a man outside their church who said that for $300 he could help them modify their loan and avoid foreclosure. Hernandez paid the man -- but got nothing in return.

Freddie Mac, the government-sponsored mortgage finance institution, said Friday that it would allow some borrowers whose houses are in foreclosure to remain in their homes as renters. The new policy's direct effect will be modest. Freddie Mac has only about 8,500 properties in foreclosure, and many are vacant. Nationwide, various estimates place the number of homes in foreclosure at more than 2 million.

With pressure growing for government action to stem foreclosures, the White House moved up to next week the unveiling of President Obama's housing rescue plan, while major banks said they would freeze seizures of homes for at least three weeks pending the rollout of the initiative. For months, Congress has been pressing the executive branch -- first the Bush administration, now its successor -- to come up with a program to curtail the growing wave of borrowers forced to give up their homes.

A nearly new but struggling shopping center for home furnishings near South Coast Plaza in Costa Mesa has been purchased out of foreclosure at a fraction of its original value by Orange County investors who hope to nurse it back to health. South Coast Home Furnishings Center, which sold for $100 million before it was completed in 2007, was bought again for about $39 million Friday by Burnham USA, a commercial real estate developer and investor.

Banks can offer loan modifications or other programs if you're behind -- or will soon be -- on a mortgage. Often the changes involve easing up on the interest rate, at least temporarily, or changing the payment schedule to give you more breathing room. But banks generally will offer these programs only if you have good prospects for paying off the loan eventually. The bank to which you write your mortgage check isn't always calling the shots in these matters.

President Obama is venturing out of the White House today for a Western swing that will see him sign into law the $787-billion stimulus package and roll out a plan meant to keep struggling families from losing their homes. The two-day trip to Denver and Phoenix reflects a decision by the president to escape the Beltway at least once a week in hopes of staying in closer contact with ordinary Americans.

President Obama will roll out his much-anticipated housing plan today in an effort to stem the tide of foreclosures that has triggered the worst recession in decades. The president will outline the plan during a speech in Phoenix, where home values have dropped 33% in the last year -- the steepest decline of any metropolitan area in the country. Across the nation, thousands of people continue to be forced from their homes every day.

Here are questions and answers about the foreclosure-prevention plan unveiled Wednesday by President Obama. Who will benefit from this plan? The plan is designed to help two kinds of homeowners. The first are people who took out prudent mortgages with a substantial down payment and have been making their payments, but who have little or no home equity because of falling housing prices.

Ledeen Halloran and Harry Snegg live a few houses apart on Claiborne Drive in Long Beach. They both have good jobs, they both voted for John McCain -- and they both have seen their home values fall more than 40%. But when it comes to their views on mortgage relief, these two neighbors are on different sides of the street. Halloran, 50, is a fan of President Obama's new plan to stave off foreclosures and thinks it could provide the cushion she needs to stay in her home.