Author: Brian Honea December 9, 2014
Fannie Mae and Freddie Mac announced on Tuesday a moratorium on evictions for single-family foreclosed homes for the holiday season.
The GSEs said evictions will not be enforced from December 17, 2014, until January 2, 2015, for single-family homes that have been foreclosed on, meaning that families living in those homes will be able to continue to live there during that two-week period. Both GSEs said that legal and administrative proceedings related to the eviction process may continue during that period even though the eviction itself will not be carried out.
“As in previous years, we believe it is important to extend the timeline of help for struggling borrowers during the holidays,” said Joy Cianci, SVP 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.”
Freddie Mac’s suspension of evictions will apply not just to foreclosed occupied single-family homes, but to 2-4 unit properties that have Freddie Mac owned or guaranteed mortgages, according to the announcement.
“Today’s announcement will bring some holiday relief to borrowers who went through foreclosure and were preparing to move,” said Chris Bowden, SVP of REO at Freddie Mac. “We strongly urge homeowners 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 one million foreclosures since 2009.”
Fannie Mae has helped work out loan solutions for more than 1.6 million distressed homeowners to avoid foreclosure since 2009. For additional foreclosure prevention resources, homeowners can visit www.knowyouroptions.com. Freddie Mac has helped more than one million struggling homeowners avoid foreclosure during that same time period; more information can be found at Freddie Mac’s Mortgage.