Both Freddie Mac and Fannie Mae
announced today that they are suspending evictions of foreclosed single family
and 2-4 unit properties during the upcoming holiday season. The holiday suspensions are in addition to localized
suspensions of both foreclosure sales and evictions announced earlier in
response to Hurricane Sandy.
Fannie Mae said legal and administrative
proceedings for evictions may continue under the directive, but families living
in foreclosed properties will be allowed to remain in the home during the
suspension period. Freddie Mac explained
two-week holiday suspension will only apply to eviction lockouts on Freddie
Mac-owned REO homes and will not affect other pre- or post-foreclosure
processes and law firms handling local evictions will continue to file
documents in preparation for evictions scheduled after January 2, 2013.
The dates of the suspensions differ
slightly between the GSEs with Fannie Mae suspending from December 19 to
January 2 and Freddie Mac from December 17 to the same end date. The Hurricane Sandy suspensions in areas
designated for assistance by FEMA will continue until February 1 for Fannie Mae
mortgages and through February for Freddie Mac's.
"We're taking this step in support of families who have faced financial
challenges and gone through a foreclosure," said Terry Edwards, Executive
Vice President of Credit Portfolio Management, Fannie Mae. "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."