Fannie, Freddie Won’t Be Grinches This Season

While legal and administrative proceedings for evictions might continue, the Baltimore Sun reported on December 2, 2011, that federal mortgage giants Fannie Mae and Freddie Mac will be temporarily suspending evictions from December 19 through January 2. According to the Jacksonville Journal, there were 122,616 foreclosures nationwide in Fannie Mae’s inventory.

“The holidays are meant for families to spend time together, especially if they’ve gone through the stress of financial challenges and foreclosure,” Terry Edwards, an executive vice president at Fannie Mae, said in a statement. “No family should have to give up their home during this holiday season.”

Additionally, CNNMoney reported that Chase Mortgage said it will not evict anyone between December 22 and January 2, and Wells Fargo will also suspend evictions during that period although it “will not shut down its eviction machinery entirely.” Bank of America said it would “avoid foreclosure sales or displacement of homeowners or tenants around the Thanksgiving and Christmas holidays,” according to CNN.

Daren Blomquist, a spokesman for RealtyTrac, told CNN that the moves are “a temporary reprieve, a symbolic gesture to help people out during the holidays.” Homeowners needing foreclosure help would be wise to use this period of time to fully consider all of their options and ensure that they do not need such a moratorium next Christmas. A Chapter 13 or Chapter 7 bankruptcy process can not only help you keep your family in your house for holidays, but could also end the seeming year-round harassment from bad bananas with greasy black peels.

Law Firm of Kevin D. Judd – Washington DC bankruptcy lawyer



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