Last week, government-sponsored enterprises Fannie Mae and Freddie Mac announced the suspension of foreclosure evictions through January 3, 2010. During the holidays, homeowners and any tenants living in foreclosed properties owned by Fannie Mae and Freddie Mac will not be subjected to eviction.
Michael J. Williams, President and CEO of Fannie Mae said, “We’re taking this step in support of struggling families who have unfortunately found themselves facing foreclosure. No family should have to face the prospect of being evicted during the holiday season.” Freddie Mac CEO Ed Haldeman added, “If the property is occupied, our attorneys will halt the eviction during this holiday moratorium. In these extraordinary times, we want to provide a greater measure of certainty to these families during the holidays.”
Fannie Mae also indicated that they will support any efforts from servicers they work with who are assuming similar measures. One such servicer, Citigroup, will also suspend foreclosure activity for borrowers whose mortgage loans are owned by their company through January 17, 2010. Citi’s temporary foreclosure break will benefit approximately 4,000 borrowers during the holidays. The 4,000 homeowners include approximately 2,000 borrowers who have foreclosure sales already scheduled, and another 2,000 borrowers who are due to receive a foreclosure notice. To clarify, if Citigroup is simply the servicer for mortgage loans owned by Fannie Mae or Freddie Mac, the moratorium will follow Fannie’s or Freddie’s guidelines.
Sanjiv Das, CEO of Citimortgage, said, “We want our borrowers to have a much less stressful time, to spend their time with their families during the holidays as opposed to worrying about their homes. …We know that moratoriums are not permanent solutions.” Das also indicated that Citimortgage is in the midst of creating “some long-term fundamental alternatives” to prevent foreclosure, but stopped short of providing any specifics details.
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