In what is becoming an annual ritual, evictions on foreclosed properties are being suspended for conventional agency loans during the holidays.
It all started in December 2009, when the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. ordered attorneys to suspend all evictions on foreclosed residential properties that were occupied.
The secondary lenders have continued the practice and suspended foreclosure evictions during the holidays in 2010, 2011 and last year.
This year is no different.
Fannie Mae and Freddie Mac each issued notices Thursday indicated that a moratorium is being put in place during the holidays.
Eviction lock-outs are being suspended from Dec. 18 through Jan. 3, 2014, on a national basis.
The moratorium impacts all foreclosed occupied single family homes and two- to four-unit properties that had mortgages owned or guaranteed by Fannie or Freddie.
Washington, D.C.-based Fannie explained that legal and administrative proceedings for evictions could continue during the moratorium.
“The holiday season is meant for quality time with family and we want to relieve anyone of the anxiety of leaving their home during this season, Fannie Mae Chief Operating Officer Terry Edwards said in the statement.
McLean, Va.-based Freddie noted that the suspension doesn’t affect other pre- or post-foreclosure activities. In addition, firms handling local evictions for Freddie might continue to file documentation in preparation for evictions scheduled after the suspension ends.
“At this time of year we want to bring some relief to families who confronted financial difficulties and went through foreclosure,” Freddie Mac Senior Vice President of REO Chris Bowden said in the statement.
Both government-controlled enterprises encouraged distressed borrowers to reach out to their mortgage servicers.
