In what could be a controversial move the Federal
Housing Finance Agency (FHFA) has directed the government sponsored enterprises
(GSEs) to allow foreclosed homeowners to repurchase their former homes at fair
market value. Prior to Tuesday’s
directive foreclosed homeowners were required to pay Freddie Mac or Fannie Mae the
entire amount that had been owed on their mortgage prior to foreclosure. This requirement applied as well to any third
party who sought the buy the home for the benefit of the previous borrower/owner.
This requirement had meant that the GSEs
had to treat such prospective purchasers differently than others who wished to
purchase the property and were allowed to do so at the fair market price as
determined by the GSEs.