Mortgage

Fannie Mae, Freddie Mac suspend foreclosure evictions during holidays

Eviction moratorium lasts from Dec. 18, 2015 through Jan. 3, 2016

As the government-sponsored enterprises have now done for several years, Fannie Mae and Freddie Mac announced that they will suspend foreclosure evictions during the holiday season.

Beginning on Dec. 18, 2015 and lasting until Jan. 3, 2016, Fannie Mae and Freddie Mac will not conduct any eviction lockouts, allowing families to remain in their homes for the holidays.

The moratorium applies to all foreclosed occupied single-family homes and 2-4 unit properties that had Freddie Mac- or Fannie Mae-owned or guaranteed mortgages.

During this period, legal and administrative proceedings for evictions may continue, but families will be allowed to remain in the home, Fannie Mae said in a release.

“As we have done in past years, we are suspending evictions during the holidays,” said Joy Cianci, senior vice president of credit portfolio management for Fannie Mae.

“We also continue to remind homeowners who may be struggling with their mortgages to reach out for help,” Cianci said. “Options are available to avoid foreclosure, and we want to help pursue those options whenever possible.”

According to Freddie Mac, the holiday suspension will apply to eviction lockouts on Freddie Mac-owned REO homes but will not affect other pre- or post-foreclosure activities.

Freddie Mac also said that companies managing local evictions for Freddie Mac may continue to file documentation as needed during the suspension period.

"Today's announcement is intended to provide a greater measure of certainty to families during the upcoming holiday season,” said Chris Bowden, senior vice president of REO at Freddie Mac.

“We also strongly urge homeowners who are facing financial challenges and possible foreclosures to explore Freddie Mac's workout options with their mortgage servicers,” Bowden added. “They do help and have prevented more than 1.1 million foreclosures since 2009."

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