Fannie and Freddie halt foreclosures for the holidays
Homeowners facing foreclosure just received an early Christmas present: They won’t be evicted from their homes over the holidays.
Mortgage giants, Freddie Mac (FMCC, Fortune 500) and Fannie Mae (FNMA, Fortune 500), announced Monday that they will suspend all bank repossessions beginning December 17 and December 19, respectively, and will not resume the evictions until January 2, 2013.
“The holidays are a chance to be with loved ones and we want to relieve some stress at this time of year,” said Terry Edwards, Executive Vice President of Credit Portfolio Management, Fannie Mae.
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According to Freddie spokesman, Brad German, the suspension will not affect other pre- or post-foreclosure activities, such as the filing notices of default or the scheduling of auction sales. Fannie said in its press release that other legal and administrative proceedings will also continue.
Bank of America (BAC, Fortune 500) said it will also put a halt to foreclosure evictions both for loans it owns and for those it services for investors during the holiday period. Other large mortgage lenders, including JPMorgan Chase (JPM, Fortune 500), Wells Fargo (BWF), and Citibank (C, Fortune 500) have postponed foreclosures during the holidays in the past, but have yet to say whether they will do so again this year.
The reprieve is separate from the previously announced moratoriums on foreclosure evictions for victims of Superstorm Sandy in New York, New Jersey and Connecticut, which will continue through February.