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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.
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