Freddie Mac and Fannie Mae have both announced that they will not pursue foreclosure evictions for the last two weeks in the year, the former electing to suspend eviction activity from December 19, 2012 until January 2, 2013. Fannie Mae will hold off from December 17, 2012 through January 2, 2013.
“We’re taking this step in support of families who have faced financial challenges and gone through a foreclosure,” said Terry Edwards, executive vice-president of credit portfolio management for Fannie Mae in a statement. “The holidays are a chance to be with loved ones and we want to relieve some stress at this time of year. We encourage homeowners having difficulty to reach out for help as soon as possible.”
This respite is different from the relief the agencies offered to Hurricane Sandy survivors: People facing foreclosure eviction in FEMA declared disaster areas will have until February 1, 2013 to find an alternative housing solution. The foreclosure holiday does not mean that legal action won’t continue during the break, but families will have a couple more weeks to remain in their homes.
“We are instructing our foreclosure attorneys to suspend pending eviction lockouts on foreclosed homes in order to provide a greater measure of certainty to families during the holiday season,” said Tracy Mooney, Senior Vice President of Servicing and REO at Freddie Mac.