Feds, Banks Postpone Foreclosure Evictions Until 2012

Government agencies and mortgage lenders have a little something to temporarily ease your holiday blues if you are a homeowner facing foreclosure -- the existing roof over your head until after the New Year.

From Dec. 19, 2011 to Jan. 2, 2012, Freddie Mac and Fannie Mae will suspend foreclosure evictions involving occupied single-family and 2- to 4-unit properties that were financed with Freddie and Fannie mortgages.

Legal and administrative proceedings for evictions may continue during the period, but if you live in a foreclosed property you won't get kicked out until after Jan. 2.

"If the property is occupied, our foreclosure attorneys will suspend the eviction to provide families a greater measure of certainty during the holidays," said Tracy Mooney, Senior Vice President of Servicing and REO at Freddie Mac.

It's a small consolation if you are facing the end of homeownership, but a consolation that has become an annual rite of passage since the housing market crashed.

"The holidays are meant for families to spend time together, especially if they've gone through the stress of financial challenges and foreclosure," said Terry Edwards, a Fannie Mae manager.

"No family should have to give up their home during this holiday season. Fannie Mae is committed to helping borrowers avoid foreclosure whenever possible and we encourage any homeowner who is having difficulty making their payment to reach out for help," Edwards added.

Mortgage lenders are offering similar holiday passes.

Wells Fargo advised the media, "We suspended evictions from Nov. 23 to Nov. 25, and will again from Dec. 19 to Jan. 2, 2012. We will not physically evict or conduct lockouts on the foreclosed properties in our owned portfolio during these times. For loans we service for others, foreclosure-related actions may still occur, but Wells Fargo will not evict tenants during these periods."

Bank of America announced, "For loans we own and those we service for investors who do not provide other guidance, we have a policy and procedures to avoid foreclosure sales or displacement of homeowners or tenants around the Thanksgiving and Christmas holidays. In addition to internal notifications of the policy, the contracted foreclosure attorneys and trustees have been instructed that they are not to schedule foreclosure sales, evictions or lockouts on covered loans during those periods."

JPMorgan Chase offered a similar moratorium and Ally Financial, which owns GMAC Mortgage, appeared likely to do the same.

Before Thanksgiving, a number of California community groups joined California Attorney General Kamala Harris calling for a foreclosure moratorium during the holiday season, to allow families to celebrate the holidays in peace and comfort.

At the San Francisco event, hosted by the Mission Economic Development Agency (MEDA), the California Reinvestment Coalition (CRC), Alliance of Californians for Community Empowerment (ACCE), PICO California, and Center for Responsible Lending (CRL) came together to call for immediate and long-term solutions that would ease the harmful effects of the ongoing foreclosure crisis and help homeowners stay in their homes.

If only...

0Written by Richard Thompson for www.RealtyTimes.com Copyright © 2011 Realty Times All Rights Reserved.