Fannie Mae and Freddie Mac prevent the extension of eviction

Fannie Mae and Freddie Mac, the largest holders of U.S. mortgages, announced on Friday that they intend to extend the eviction cessation until March. They are also launching a new strategy to offer qualified owner-occupants and tenants' leases so they can rent the properties on a month-to-month basis after foreclosure at market rates. 

This is the third extension of eviction suspensions. Both Fannie Mae and Freddie Mac started a program to suspend foreclosures evictions on Nov. 26. Those policies were set to expire on Jan. 9, but they were extended until Friday. 

This program joins other initiatives discussed in Washington that could help troubled homeowners struggling with foreclosure. The Obama administration is supporting legislation under consideration in Congress that would allow bankruptcy judges modify mortgages. Treasury Secretary Henry Geithner is working on a program to use $50 billion to $100 billion of a $700 billion bank bailout program for foreclosure prevention. 

While lawmakers and Geithner contemplate other efforts, Fannie Mae and Freddie Mac are taking temporary actions to keep people in their homes. The program also brings together borrowers and servicers to try and work out a payment arrangement before foreclosure takes place. Roughly 8,500 Freddie Mac properties are in some state of foreclosure. Fannie Mae will also provide financial assistance for a "transition" to individuals that decide to leave the property.