As has become a tradition since the financial crisis erupted, foreclosures on conventional conforming mortgages will be suspended during the holidays.
An announcement Monday from the Federal National Mortgage Association indicated that it will suspend evictions on foreclosed one- to four-unit properties. The suspension will start on Dec. 19 and conclude on Jan. 2, 2013.
However, Fannie Mae noted that legal and administrative proceedings for evictions might continue — though families living in foreclosed properties will be allowed to remain in the home during the suspension period.
“We’re taking this step in support of families who have faced financial challenges and gone through a foreclosure,” Fannie Mae Executive Vice President of Credit Portfolio Management Terry Edwards said in the notice. “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.”
A similar notice was released from the Federal Home Loan Mortgage Corp.
Freddie Mac noted that other pre- or post-foreclosure processes are not impacted.
“We are instructing our foreclosure attorneys to suspend pending eviction lockouts on foreclosed homes in order to provide a greater measure of certainty to families during the holiday season,” Freddie Mac Senior Vice President of Servicing and REO Tracy Mooney said in the news release.
Both Fannie and Freddie noted that the moratoriums are in addition to the suspension of evictions in areas impacted by Hurricane Sandy.
Similar moratoriums were enacted in December 2011, December 2010 and December 2009.
