Mortgages Blog

Finance Blogs » Mortgages » Foreclosure evictions suspended

Foreclosure evictions suspended

By Polyana da Costa · Bankrate.com
Tuesday, December 4, 2012
Posted: 2 pm ET

Fannie Mae and Freddie Mac will provide a short break for homeowners facing foreclosure during the holiday season.

Fannie says it will suspend evictions of borrowers living in foreclosed homes from Dec. 19 through Jan. 2. Freddie will put evictions on hold as of Dec. 17.

"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 at Fannie Mae. "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."

The assistance doesn't mean lenders will put a hold on foreclosures. Fannie and Freddie say the foreclosure process and the legal proceedings for evictions may continue, but the actual eviction will not take place during the moratorium.

Fannie and Freddie had previously announced a 90-day moratorium on foreclosure sales and evictions in areas affected by Superstorm Sandy. The suspension for storm victims will last through Feb. 1.

Follow me on Twitter @Polyanad.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.