It already has become a holiday tradition in America, Fannie Mae and Freddie Mac have announced that they will suspend foreclosures for the holidays, but don’t expect that moratorium to last until the kids head back to school. This year, foreclosures will be suspended from December 18, 2015, to January 3, 2016. It is quite possible, however, that your foreclosure will not feel particularly delayed due to the holidays since legal and administrative proceedings will continue. Only evictions will halt.
“As we have done in past years, we are suspending evictions for the holidays,” said Joy Cianci, senior vice president of credit portfolio management at Fannie Mae, of the decision. She noted that ideally the moratorium might lead homeowners currently struggling with their mortgages to reach out for help as the move presents the government-controlled GSEs in a softer light than usual. “Options are available to avoid foreclosure,” she said, adding, “We want to help pursue those options whenever possible.”
Chris Bowden, senior vice president of REO at Freddie Mac, also chimed in – Freddie Mac’s workout options, do help,” he insisted, noting that the GSE has worked with homeowners to “prevent more than 1.1 million foreclosures since 2009.” He added that the federal government hopes that the foreclosure moratorium will provide “a greater measure of certainty to families during the upcoming holiday season.”