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Fannie Mae, Freddie Mac freezing foreclosures for holidays

Fannie, Freddie and major lenders are freezing foreclosures for the holidays, but come January, evictions will resume, and there is no promise of leniency after a prolonged halt on evictions.

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freezing foreclosures

Freezing foreclosures for the holiday season

According to Fannie Mae, they will be freezing foreclosures by halting evictions during the holidays, along with Freddie Mac, Citigroup, and JPMorgan Chase, as has been true in recent years. The freeze applies to homeowners in a single-family property and in apartments with up to four units that are financed by a mortgage from Fannie Mae or Freddie Mac.

Fannie and Freddie will freeze foreclosures from December 19th through January 2nd, 2013, and Chase will suspend all evictions from December 19th through January 1st, 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, an Executive Vice President in Fannie Mae’s credit management division, in a statement. Edwards urges struggling homeowners to call Fannie as soon as possible.

Although evictions will be halted, freezing foreclosures does not stop the filing of foreclosure documents, and evictions will continue immediately after the freeze is lifted.

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Superstorm Sandy victims see relief

After Superstorm Sandy hit, Fannie and Freddie announced a suspension in evictions for 90 days for borrowers with loans backed by either government-sponsored entity. The Federal Housing Administration also announced a foreclosure freeze on federally insured homes in areas of Connecticut, New Jersey, New York, and Rhode Island that were hit by the storm.

The takeaway

Although housing is showing signs of improvement, foreclosures continue to remain elevated, at nearly three times their pre-recession levels. Homeowners continue to struggle, and as has been offered during the holidays in recent years, Fannie Mae, Freddie Mac, and major lenders are hitting the pause button on evictions so homeowners can relax for a moment, but struggling homeowners must remember that evictions resume in January, and after a foreclosure freeze, lenders may not be as forgiving.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

8 Comments

8 Comments

  1. LorenSan

    December 5, 2012 at 10:38 am

    @benbalsbaugh yep, it has. Seems like the right thing to do.

  2. LorenSan

    December 5, 2012 at 10:38 am

    @tomroyce Hey Tom hope all is well in your neck of the woods:-)

  3. LorenSan

    December 5, 2012 at 10:46 am

    @TomRoyce it has been an interesting year with many things to be thankful for, thanks for asking Tom:-)

  4. LorenSan

    December 5, 2012 at 11:31 am

    @tomroyce 🙂

  5. JamesFestini

    December 5, 2012 at 7:21 pm

    I am sure those demons at Flagstar are exempt

  6. jtwoodward

    December 6, 2012 at 10:57 pm

    Maybe they will consider doing the sensible thing and green light write downs for owners who want to stay.

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