Freddie Mac and Fannie Mae to suspend foreclosures over the holidays
Freddie Mac and Fannie Mae have ordered their mortgage servicers and foreclosure attorneys to suspend foreclosure sales and evictions for thousands of homes across America over the holidays.
"Freddie Mac is on track to help three out of every five troubled borrowers with Freddie Mac-owned loans avoid foreclosure this year," Freddie Mac chief executive officer David Moffett said in a statement. Freddie Mac and Fannie Mae have issued a notice to loan servicing organizations and retained foreclosure attorneys directing them to suspend foreclosure sales on occupied single-family properties as well as the completion of evictions from occupied single-family properties scheduled to occur from Nov. 26, 2008, until Jan. 9, 2009.
The temporary suspension of foreclosures is designed to allow affected borrowers facing foreclosure to retain their homes while Freddie Mac and Fannie Mae work with mortgage servicers to implement the streamlined modification program scheduled to launch Dec. 15.
Foreclosure attorneys and loan servicers will be instructed to use the additional time to reach out to borrowers who have defaulted on their loans and continue to pursue workout options.
The streamlined modification program is aimed at the highest risk borrower who has missed three payments or more, owns and occupies the primary residence, and has not filed for bankruptcy.
