Fannie Mae and Freddie Mac have extended a moratorium on foreclosures until January 31, 2009. The foreclosure moratorium which has been in effect since November 26, 2008 was previously scheduled to end January 9, 2009. Over 6,000 homeowners facing foreclosure will receive another reprieve in an effort to give them time to take advantage of the companies’ Streamlined Modification Program designed to help them avoid foreclosure completely. The program targets borrowers facing foreclosure who are 90 days or more delinquent on their mortgage payment.

Fannie Mae and Freddie Mac don’t have any actual hard data one how many homeowners have been helped by the foreclosure moratorium. And I wonder how effective this modification program is for homeowners facing foreclosure who have ruined credit and other debts weighing down on them. Unfortunately for many homeowners facing foreclosure bank run and controlled loan modification programs are not enough to keep them from facing financial disaster somewhere down the road. If you’re a homeowner struggling to pay your mortgage or facing foreclosure don’t wait for these loan modification programs to work their “magic.” Speak with a professional bankruptcy attorney to find out how you can save your home and discharge/repay other debts in bankruptcy.