Home for the holidays: Fannie, Freddie stall foreclosure evictions

The government-sponsored enterprises are suspending eviction lockouts for the holiday season.

Though legal and administrative proceedings may advance, evictions for units owned by Fannie Mae and Freddie Mac will be halted between Dec. 17 and Jan. 2. This means while other pre- and post-foreclosure activities will not be affected, and servicers may continue to file related documentation, homeowners may remain in their houses during this period.

Foreclosures

The eviction moratorium applies to single-family and two-to-four unit properties, according to Fannie Mae.

The share of loans in the foreclosure process at the end of the third quarter was 0.99%, which is down 24 basis points from a year ago and 6 basis points from the previous quarter, according to the Mortgage Bankers Association. Mortgage delinquencies overall inched up, but a healthier economy is still keeping them low.

The suspension lockouts issued by Fannie and Freddie have also been issued in previous years to provide relief for households during the holidays.

This moratorium also comes at a time when legal proceedings, late payment fees and credit bureau reporting have been temporarily suspended for properties affected by natural disasters like the recent California wildfires.

Posted by eagleplatinummortgage_wgovya

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