What the Fannie and Freddie seizure means to consumers

The federal government seized control of Fannie Mae and Freddie Mac in an effort to rescue the troubled mortgage companies. A report in the New York Times explains what the takeover means to consumers:

"Mortgage rates may fall a bit initially but probably not enough to halt the decline in home prices anytime soon. Some delinquent borrowers may have a better shot at modifying their loans and ending up with lower fixed payments. And the rules on new mortgages could slightly change."

Our advice right now:

1. Continue making your mortgage payments.
2. If you are in default, talk to a housing counselor. Free state-sponsored foreclosure and homeownership counseling is available by calling 1-877-894-HOME (4663) or visiting www.homeownership.wa.gov. Our Web site also provides resources.
3. Beware of possible scams, such as individuals who contact you claiming to be from the federal government. If someone says you need to pay them or provide personal information, remain skeptical. Never provide this sort of information to someone who initiates contact with you by phone or e-mail.