Freddie Mac and Fannie Mae planning a foreclosure holiday

Posted by: Prashant Gopal on November 20, 2008

Fannie Mae and Freddie Mac are putting a temporary halt to foreclosure sales and evictions of occupied single-family homes during the holiday season.

It’s not just that the government-controlled mortgage finance companies have gotten into the holiday spirit. The idea of the suspension, which will last from Nov. 26 to Jan. 9, is to help service providers implement a new loan modification program for borrowers who are at least 3 months behind on payments. The program is only for loans owned by the two companies.

“Freddie Mac is on track to help three out of every five troubled borrowers with Freddie-Mac-owned loans avoid foreclosure this year,” David M. Moffett, Freddie Mac Chief Executive Officer, said in a statement. “Today’s announcement … provides a new measure of certainty to many of these families during the holidays.”

Here’s the Fannie Mae release.

And here’s Freddie’s release.

Reader Comments

Eric

November 20, 2008 7:46 PM

Why postpone price correction, instead of letting them fall quickly to levels where they truly belong? I think the gov't should be doing more to help unemployed homeowners instead of those who bit more than they could chew, or others who exaggerated their income to buy those mansions; not forgetting the greedy speculators who helped to prop up home prices - let them feel the squeeze!

Ryan

November 20, 2008 8:38 PM

Yay, they can save themselves from being all over the news throwing people out of their homes by the thousands ON Thanksgiving, Christmas, and New Years Days then when that's over, they can throw them all out on their butts at once and it doesn't make the news.

What a culture we have, theres a whopping 3 days out of the year where we aren't totally apathetic towards one another.

I really have to wonder how many ultra right-wing nuts like that Joe The Plumber there are out there who wouldn't mind seeing people thrown out of their homes and out into the winter on even those few days...

Kirt

November 24, 2008 6:25 PM

I wonder how may people have moved into Ryan's house to help them out. People want the government to help them out of a mortgage that they should have never gotten into in the beginning. Can we ask for these people to downsize their car from the large SUV? Can we ask these people to drop their premium satellite service, or unlimited text messaging and internet service on their cell phones?

You cannot help people that are unwilling to help themselves.

Cheryl

February 6, 2009 10:47 AM

My husband is employed by these people, he cleans and maintains these properties but because of the restructuring of how they pay their contractors - very minimal - they no go through a centralized company that makes the large money while the contractors barely cover their costs and now I've lost my job and our house is being taken away today. I have junk cars, basic cable, yes a luxury, but I live minimally, I tell my children no all the time. We shop at the Thrift Stores not malls. No one can help because of our severe decrease in income - Not everyone out there is unwilling to help themselves. I hope you never have to experience anything like this in your lifetime or know anyone that does.

Glen Proven

February 6, 2009 6:02 PM

The price of real estate needs to fall to the markets demand. I myself will not buy as long as I know the Government is artificially propping up prices to help the banks. If people can not afford the current mortgage they should stay as renters. I or you could buy the property at it's real market price and keep the previous owners on as renters at the fair market rents. This will prevet a family from having to move and should cut their monthly payments by a third or more. Everyone I know that is upside down is in the situation because of their own fault: Taking out 2nd and 3rd trust deeds, or the musical chairs of buy too late at the tip of the bubble. I don't see many real victims, if you can't read a mortgage contract go back to middle school.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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