For the sixth year in a row now, the government sponsored enterprises are suspending evictions on foreclosed properties during the holidays.
The Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. started suspending evictions in December 2009.
Ever since, the pair of secondary mortgage lenders have continued to institute the moratorium on evictions each year.
This holiday season, evictions are being suspended from Dec. 17 until Jan. 2, 2015, according to separate announcements from Fannie Mae and Freddie Mac.
Loans secured by single-family residences, as well as two- to four-unit properties, are impacted by the policy.
Although borrowers will be allowed to remain in the properties during the moratorium, legal proceedings, pre-foreclosures activities and post-foreclosure activities will not be suspended during the period.
“As in previous years, we believe it is important to extend the timeline of help for struggling borrowers during the holidays,” Joy Cianci, senior vice president of credit portfolio management at Washington-based Fannie, said in the statement.
Chris Bowden, senior vice president of REO at McLean, Va.-based Freddie, said, “Today’s announcement will bring some holiday relief to borrowers who went through foreclosure and were preparing to move. We strongly urge homeowners with financial challenges to start the New Year by calling their mortgage servicer to explore one of the Freddie Mac workout options that have prevented over one million foreclosures since 2009.”
