Freddie Mac and Fannie Mae rent foreclosed home.

Freddie Mac and Fannie Mae said they would offer leases to homeowners who will lose their homes under foreclosure. Existing tenants of the mortgage borrowers / homeowners will also be offered leases.

This additional mortgage and foreclosure assistance is a new feature of a plan being implemented this month by Fannie Mae and Freddie Mac. This is according to statements from the two government-controlled companies.

Currently, both companies have also extended their suspensions of evictions of renters or borrowers due to foreclosure through Feb. 28.

By allowing homeowners to stay in their homes by extending leases to those borrowers in addition to tenants, Freddie Mac’s plan should go further toward easing the impact of foreclosures on homeowners and also the community, where a rising numbers of empty homes is depressing home prices further. When house prices fall, foreclosures are following as stressed borrowers find themselves owing more than the house is worth, unable to obtain additional financing, and then going into foreclosure.

David Moffett, Freddie Mac's chief executive officer has said that keeping foreclosed homes and properties occupied and in better repair will help local property values stay high and promote a faster recovery in the housing market.

In addition, Freddie Mac said that it will still seek loan modifications to allow borrowers to retain ownership. Eligible renters will be offered month-to-month leases to stay in the home.