For the second time in as many months, Fannie Mae and Freddie Mac have halted foreclosures. The latest moratorium is a bridge to an upcoming modification plan.
Washington, D.C.-based Fannie announced today that it is suspending foreclosure sales through March 6. The moratorium also applies to evictions from occupied properties.
McLean, Va.-based Freddie said in its own press release that it will immediately suspend foreclosures sales on all owner-occupied one- to four-unit properties where it owns the mortgage. Its moratorium also runs through March 6.
The two government sponsored enterprises are making the moves in anticipation of the Obama administration’s upcoming $50 billion plan for the federal government to fund loan modifications. Details of that plan are expected to be unveiled in the next few weeks.
Fannie and Freddie originally implemented a moratorium on Nov. 20, 2008, that ran out on Jan. 31.
Citigroup Inc. and JPMorgan Chase & Co. have also indicated they will halt foreclosures on loans they own while the president finalizes the modification plan.
