Federal mortgage backers Fannie Mae and Freddie Mac announced this week that they have halted evictions from foreclosed homes during the holidays.
For Fannie Mae backed mortgages, the suspension on evicting homeowners will be from Dec. 19 through Jan. 2.
On Freddie Mac backed mortgages, the suspension dates are from Dec. 17 through Jan. 2.
The eviction and lockout suspensions have become a yearly tradition for the two government-sponsored entities since the real estate bust left hundreds of thousands of homeowners facing the loss of a home during the Christmas holidays.
"We're taking this step in support of families who have faced financial challenges and gone through a foreclosure," said Terry Edwards, executive vice president of credit portfolio management at Fannie Mae, in a press release. "The holidays are a chance to be with loved ones, and we want to relieve some stress at this time of year. We encourage homeowners having difficulty to reach out for help as soon as possible."
The eviction suspensions do not impact other foreclosure-related activities.
“While I applaud the eviction moratorium, the two-week suspension does little to address rampant problems in the foreclosure process itself,” stated Carlos Reyes, a foreclosure defense attorney from the Reyes Law Group in Fort Lauderdale. “All it does is delay the inevitable.”
According to Fannie Mae and Freddie Mac, foreclosure processes and related legal proceedings may continue, but the actual eviction will not take place during the moratorium.
Fannie Mae and Freddie Mac previously announced a 90-day moratorium on foreclosure sales and evictions in areas affected by Superstorm Sandy. The suspension for storm victims will last through Feb. 1.