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Freddie Mac announced several incentives for those who help people facing foreclosure. With recent news describing Freddie Mac as being insolvent it may come as a surprise to some.

Freddie Mac today told mortgage servicers it was doubling the amount of money it pays
for each workout that keeps a delinquent borrower with a Freddie Mac-owned
mortgage out of foreclosure.

One of the nation's largest investors in residential mortgages, Freddie
Mac also announced it will start reimbursing servicers for the cost of
door-to-door outreach programs, give servicers more time to negotiate
workouts in states with fast foreclosure processes, and make administrative
changes intended to streamline the workout process.

"We are taking these steps because we want to reinforce the tremendous
importance of workouts and reward their use," said Freddie Mac Vice
President of Servicing and Asset Management Ingrid Beckles. "Giving our
servicers more time and greater compensation to help troubled borrowers is
fundamental to preserving homeownership and maximizing our efforts to
minimize foreclosures."

Freddie Mac is also extending the amount of time a person can negotiate their mortgage during the foreclosure process in the faster foreclosure states.

In addition to Washington, DC, the affected states include Alabama,
Alaska, Arizona, Arkansas, California, Georgia, Hawaii, Maryland, Michigan,
Minnesota, Mississippi, Missouri, New Hampshire, North Carolina, Rhode
Island, Tennessee, Texas, Virginia, West Virginia and Wyoming.

Specifically, starting August 1, 2008, servicers are allowed up to 300
days (10 months) from the due date of the last payment to the foreclosure
sale in these states to seek aggressive and sustainable workout solutions
for the borrowers and still meet the standards set in Freddie Mac's
Servicer Performance Profiles. The company uses the Servicer Performance
Profiles to measure and reward the quality of a servicers' investor
reporting and default management.

Even though the laws in these states permit a lender to foreclose in
less than 300 days, this announcement means Freddie Mac will permit its
servicers more time to complete foreclosures. The new policy won't affect
borrowers in states where the foreclosure process already exceeds 300 days.