Struggling homeowners get holiday break

No one will be evicted from their home during the holiday season, say most mortgage lenders, who traditionally delay evictions or foreclosures during the holidays.

Both of the major government sponsored enterprises (GSEs) – Fannie Mae and Freddie Mac – that buy and sell mortgages in the secondary market have announced eviction moratoriums. Fannie Mae announced a moratorium on evictions – the final step in any foreclosure when people are actually expelled from their homes – between Dec. 19 and Jan. 2. The moratorium does not apply to multifamily housing, only single-family homes and properties with a maximum of four apartments.

However, the other aspects of a foreclosure will continue over the holidays, including legal and administrative proceedings.

“We believe it is important to extend the timeline of help for struggling borrowers during the holidays,” says Joy Cianci, senior vice president at mortgage finance company Fannie Mae.

Chris Bowden, senior vice president of REO at Freddie Mac, says he wants to “help provide families with a greater measure of certainty during the upcoming holiday season,” adding that at-risk owners can use the time to “reach out to their mortgage servicers and explore the alternatives that are in place to help homeowners year-round.”

Source: Florida Realtors