Banks Suspend Foreclosures During The Holidays Once Again This Year
For the second time in as many years, several of the largest mortgage players in the mortgage market have indicated that they will not evict borrowers in default who are facing foreclosure during the two weeks surrounding Christmas.
Fannie Mae and Freddie Mac, the two government-controlled mortgage entities that back many home loans, are freezing all foreclosure evictions on mortgage loans they own or back from Dec. 20 through Jan.3.
Evictions mark the end of the foreclosure process. After the home is sold at foreclosure auction -- or banks take possession of the home -- owners must leave the property or face eviction notices.
"If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays," said Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac.
In addition, three of the largest mortgage servicers, Bank of America, Wells Fargo and Chase have also all three indicated that they will follow suit as well with a foreclosure freeze during the same two week period as Fannie and Freddie.
However, these servicers have also indicated that the will continue the foreclosure process for loans they service that are held by investors who decline to participate in the freeze and for properties that are known to be vacant.
Even though this is only a two week freeze, with the number of bank repossessions amounting to almost 100,000 per month, the temporary stoppage could affect tens of thousands of borrowers in default over the holiday season.
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