It’s the season of giving, and one could argue that Freddie Mac and Fannie Mae are feeling “generous” again this year.
The two government-controlled mortgage giants are freezing all foreclosure evictions on mortgage loans they own or back from Dec. 20 to Jan.3, according to cnnmoney.com. The temporary reprieve could affect tens of thousands of borrowers in default.
“If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays,” said Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac.
The majority of the larger banks – including Bank of America, J.P. Morgan Chase and Wells Fargo – already observe a freeze through the New Year. In the event that the foreclosure involves an investor who chooses not to observe the holiday policy, a moratorium is not enforced.