Homeowners who face foreclosure will get a short break this holiday season. Fannie Mae and Freddie Mac will suspend foreclosure evictions from Dec. 19 through Jan. 2.
For those whose homes are in foreclosure, this doesn’t mean the foreclosure process will be put on hold. Foreclosure proceedings will continue, but borrowers will be "permitted" to remain in the foreclosed homes during the holidays, even if an eviction order is granted, according to Fannie.
Some large national servicers also say they will put a moratorium on evictions until after the New Year's holiday.
From Wells Fargo:
"We suspended evictions from Nov. 23 to Nov. 25, and will again from Dec. 19 to Jan. 2, 2012," a Wells Fargo spokesman says. "We will not physically evict or conduct lockouts on the foreclosed properties in our owned portfolio during these times. For loans we service for others, foreclosure-related actions may still occur, but Wells Fargo will not evict tenants during these periods."
Chase also says it will not complete foreclosure sales or evictions from Dec. 22 through Jan. 2.
Let's hope all servicers will follow suit.
"The holidays are meant for families to spend time together, especially if they’ve gone through the stress of financial challenges and foreclosure," says Terry Edwards, Fannie Mae's executive vice president of credit portfolio management. "No family should have to give up their home during this holiday season."
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