Fannie, Freddie Gift a Foreclosure-Free Holiday
Fannie Mae and Freddie Mac announced they plan to suspend evictions on foreclosed single-family properties nationwide during the holidays, from Dec. 17, 2014 through Jan. 2, 2015.
Legal and administrative proceedings for evictions may continue, as well as pre-foreclosure activities, but families who are living in foreclosed homes will be allowed to remain in their homes during that time.
Freddie Mac says that the foreclosure moratorium applies to all foreclosed occupied single-family homes as well as properties with two to four units that have mortgages owned or guaranteed by Freddie Mac.
“Today’s announcement will bring some holiday relief to borrowers who went through foreclosure and were preparing to move,” Chris Bowden, senior vice president of REO at Freddie Mac, said in a statement. “We strongly urge home owners with financial challenges to start the New Year by calling their mortgage servicer to explore one of the Freddie Mac workout options that have prevented over 1 million foreclosures since 2009.”
The foreclosure moratorium has become a holiday tradition, which Freddie Mac and Fannie Mae both have extended the past few holidays.
“As in previous years, we believe it is important to extend the timeline of help for struggling borrowers during the holidays,” says Joy Cianci, senior vice president of credit portfolio management for Fannie Mae. “If you are in trouble or facing foreclosure, reach out to Fannie Mae or your servicer today to get help. There are more options than ever before to avoid foreclosure. We want to help struggling borrowers whenever possible.”
Fannie Mae reports that it has completed more than 1.6 million loan workout solutions to help distressed families avoid foreclosure since 2009.
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