The two largest insurers of home loans, Fannie Mae and Freddie Mac, have decided to sell more of their delinquent mortgages to private investors willing to foreclose. At the same time they have set new rules making it easier for owners whose homes are at risk to stay in them.

According to the Wall Street Journal,

“Investors who take over delinquent mortgages backed by Fannie Mae and Freddie Mac must try harder to reach agreements that let borrowers keep their homes before kicking them out…

The rules … require investors to consider extending loan terms, forbearing or forgiving mortgage principal, or pursuing a short sale before Foreclosure. When an investor does foreclose, for the first 20 days after the property is marketed, the investor can consider selling the property only to nonprofit groups or to people who intend to live in the house, rather than to other investors.”