Fannie, Freddie halt foreclosures for the holidays

(MoneyWatch) Fannie Mae (FNMA) and Freddie Mac (FMCC), along with some of the nation's biggest lenders, said Monday that they will suspend some foreclosures during the holidays.

From Dec. 19 through Jan. 2, 2013, Fannie will halt evictions of homeowners in a single-family property and in apartments with up to four units that are financed by a mortgage from the government-sponsored enterprise. Freddie, the nation's other main provider of government-backed housing loans, will stop foreclosures for the same the type of homes from Dec. 17 through Jan. 2, 2013.

JPMorgan Chase (JPM) and Citigroup (C) said in statements that they also are temporarily ceasing foreclosures. JPMorgan said it would suspend all evictions beginning Dec. 19 through Jan. 1; Citi did not specify dates for its suspension.

• Mixed news for homeowners facing foreclosure
  
• Fannie Mae, Freddie Mac suspend foreclosures in storm-hit areas
  
• Government suspending some foreclosures in Northeast because of Sandy
  

Fannie Mae announced on Monday that the agency is halting foreclosure evictions in support of families who have faced financial challenges. "The holidays are a chance to be with loved ones and we want to relieve some stress at this time of year," said Terry Edwards, an executive vice president in Fannie Mae's credit management division, in a statement.

Edwards said borrowers who are struggling with their house payments should contact Fannie as soon as possible. 

Although the news is likely to bring a measure of relief to homeowners at imminent risk of eviction, the respite will be brief. Freddie noted that firms that handle evictions for the company will continue filing foreclosure documents, such as default notices, so evictions can resume after January 2 of next year. 

Fannie and Freddie, which finance the housing market by purchasing mortgages from lenders, are government-owned. They were seized by federal authorities in 2008 after the agencies suffered massive financial losses stemming from the housing crash.

Following superstorm Sandy, both agencies said that they would suspend evictions and foreclosures in affected areas for 90 days. For borrowers with a Fannie loan, that foreclosure moratorium will last through Feb. 1, 2013, while for Freddie customers the suspension lasts through next February.

The Federal Housing Administration in November also halted foreclosures on federally insured homes in storm-hit areas of Connecticut, New Jersey, New York and Rhode Island.

Foreclosure activity has fallen in recent months. According to real estate research firm CoreLogic, 58,000 foreclosures were completed in October, down 17 percent from the year-ago period.

Still, foreclosures remain elevated. Between 2000 and 2006, when the bubble in housing prices started to deflate, an average of roughly 21,000 foreclosures were completed each year. Roughly 1.3 million homes, or 3.2 percent of all properties with a mortgage, were in some process of foreclosure as of October, down from 1.5 million in the same period last year, according to the firm.

[audemus]

Yes indeed, have yourselves a merry little Christmas, and try not to worry about being unable to get any presents for the kiddies this year, or that just as soon as the fat ones get over their New Years Eve hangovers, your home will be taken from you.

"Twas the night before Christmas and all through the house,
The people were having nightmares, for soon they'd be tossed out..."

[Krowster]

Gee, how generous. Now they all have some free time for the holidays, too. Once, next year comes along, overtime mania will strike the banks. It's amazing what people do to their fellow man for a salary. Worst yet, they excuse their conscience with the old favorite, "someone has to do it." Well, guess what? That's a bunch of crap. No one has to do anything that do not want to do. Get another job, one that raises your spirit, not descend it.

[chevyhotrod]

So people should just be aloud to live in their home for free?

Since we are no longer a christian nation, why do we care if they are foreclosed on during the Christmas season?

"No one has to do anything that do not want to do"

Agreed, they didn't have to buy a home they couldn't either and just live within their means, just like our Federal government should do.

[joannenc]

Aw-w-w isn't that sweet,,,,the Spirit of Christmas is waiting in the elevator...to take you down below the basement...

[john92021]

nice spin on bankers holiday break.

[hypnotoad72]

Let me guess - there's another bank and supply-side bailout (at our expense) waiting in the wings, even after all of the taxpayer-funded subsidy, tax breaks, tax cuts, and other true entitlements corporations get.

Since I used the e-word, a reminder: social security, et al, are not entitlements because we've put our money into them for later collection. THAT is OUR money. Anyone, especially the GOP, trying to dictate otherwise can go elsewhere. They do not represent America's working class.

[chevyhotrod]

The majority take more money out of social security than they put in. At the point where you take more than you have put in, does it become an entitlement then?

I have an novel idea, why not just be able to keep OUR own money and not let the Federal Government take it in the first place and we can manage our own futures?

[jamie047]

Ahhhhh!!!!! Thanks for the few extra days (eye roll).