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Foreclosure evictions on hold

By Polyana da Costa · Bankrate.com
Thursday, December 1, 2011
Posted: 4 pm ET

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."

Follow me on Twitter @Polyanad.

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5 Comments
Prissy
January 25, 2012 at 2:48 pm

Gosh banksters, as my grandmother would say, "That's mighty white of you." Who says you all don't have any conscious?

Oscar
January 11, 2012 at 9:35 pm

I agree with all above! this mortgage mess will not get better UNTIl the banks reduce the principles. why not? if the bank forecloses and sells to owner-ocupant or investor, the sales price will be no more than what the property appraises for anyway. this is the ONLY viable solution. Notwhitstanding the fact that the banks caused the values to plummet, they have resorted to any and all methods to defraud homeowners. Reducing the principle would allow the foreclosures to drastically reduce in numbers; unlike a sale for the depressed value, modifications or principle reductions would have the same affect as refinancing on home prices ( that's right- NONE)!

monica chandler
January 10, 2012 at 12:59 pm

If the owner is keeping the property clean and renting the home the bank should leave well enough alone same as the homeowner.Reduce principal balances to tax records and we would all be happy.The banks received help the American people need help...........

dlc0109
December 02, 2011 at 1:58 pm

neo1233, i couldn't agree more!

neo1233
December 02, 2011 at 9:23 am

aren't the lenders sweet, collect interest for the first 10-20 years of the loan with miminimal being applied to principle, and willing to give the homeowner a whole two weeks before foreclosing...wow we all should be so grateful we have the financial companies backing our needs...