Freddie Mac suspends all foreclosure sales of occupied homes from November 26 until January 9, 2009MortgagePress.comFreddie Mac, foreclosures, Federal Housing Finance Agency,
Freddie Mac has announced it has ordered its national network of
mortgage servicers and foreclosure attorneys to suspend all
foreclosure sales and evictions involving occupied single family
and 2-4 unit properties with Freddie Mac-owned mortgages between
Nov. 26, 2008 and Jan. 9, 2009. The suspension will help servicers
implement the Streamlined Modification Program recently announced
by Freddie Mac, Fannie Mae, the Federal Housing Finance Agency
(FHFA), HOPE Now and 27 mortgage servicers. The temporary
suspension is also expected to give servicers more time to help
borrowers avoid foreclosure.
Specifically, Freddie Mac servicers and foreclosure attorneys
were told to contact as quickly as possible an estimated 6,000
borrowers with foreclosure sales scheduled between Nov. 26, 2008
and Jan. 9, 2009. If the property is occupied, the servicers and
foreclosure attorneys will halt the sale. This temporary suspension
of foreclosure sales will not apply to vacant single family
properties. Additionally, no evictions will be completed between
Nov.26 and Jan. 9.
"By working closely with FHFA and our servicers, Freddie Mac is
on track to help three out of every five troubled borrowers with
Freddie Mac-owned loans avoid foreclosure this year," said Freddie
Mac Chief Executive Officer David M. Moffett. "Today's announcement
builds on this momentum and provides a new measure of certainty to
many of these families during the holidays."
Moffett said that by delaying these foreclosure sales, the
nation's servicers will have the opportunity to work with more
borrowers who could qualify for a modification under the new
Streamlined Modification program scheduled to begin by Dec. 15.
"Today's announcement has the potential to enable more families
struggling in these extraordinary times to take advantage of this
vital new initiative developed with FHFA, the Treasury Department
and the mortgage finance industry," said Moffett.
Moffett also emphasized that lenders servicing Freddie Mac-owned
mortgages will continue to work with borrowers to consider all
workout options Freddie Mac employs to help distressed borrowers
who can and want to stay in their homes, such as permanent rate
reductions and mortgage term extension modifications.
This year, Freddie Mac expects to approve 84,000 workouts for
the estimated 140,000 who are delinquent on Freddie Mac-owned
mortgages. (For more about Freddie Mac workout options, see freddiemac.com/avoiding_foreclosure.)
Freddie Mac's temporary suspension of foreclosure sales is the
latest in a series of efforts to help troubled borrowers. Other
recent initiatives have included, delegating expanded workout
authority to servicers, doubling the amount of money servicers are
paid for successful workouts, and paying non- profit organizations
to reach out to worried borrowers.
For more information, visit www.freddiemac.com.