Fannie Mae and Freddie Mac are in discussions, regarding mortgage services with US title insurers, if they happen to face any legal hurdles, while foreclosing homes. The two bodies, Fannie Mae (FNMA. OB) and Freddie Mac (FMCC. OB) have combined guarantees, amounting to $11 trillion in the form of mortgages, across the United States.

The move by Fannie and Freddie has come after many home owners, whose houses were foreclosed, moved to the court against banks by accusing them of questionable paperwork for acquiring their homes. According to expectations, further more people are likely to join the ever increasing list of people opting for lawsuits against the banks.

The increasing numbers of disputes regarding foreclosed homes in the U. S are likely to create more trouble for title insurers in the time to come. The talks are currently being held between Fannie and Freddie with American Land Title Association, to ensure that legal battles regarding the foreclosure are funded by the loan servicers.

While talking about the interest of Fannie and Freddie in the prevailing situation, the spokesman for Fidelity National Financial Inc, Peter Sadowski has stated that Fannie Mae and Freddie Mac wanted to ensure that the foreclosed homes were up for sale in the market as quickly as possible.