Reuters: U.S.: Fannie, Freddie place evictions on hold for the holidays

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Fannie, Freddie place evictions on hold for the holidays Dec 3rd 2012, 16:16 Tweet Share this Email Print Related News Fed balance sheet shrinks in latest week Fri, Nov 30 2012 UPDATE 2-U.S. housing regulator sees recovery taking root Wed, Nov 28 2012 New home sales stagnant, cast shadow on housing Wed, Nov 28 2012 WRAPUP 4-U.S. housing starts hit four-year high in October Tue, Nov 20 2012 Housing starts hit four-year high in October Tue, Nov 20 2012 Analysis & Opinion U.S. student loan trouble discredits their value Eminent domain or principal reductions, the bottom line is reducing mortgage debt Related Topics Investing Simplified » U.S. » Housing Market » A view shows the Fannie Mae logo at its headquarters in Washington March 30, 2012. Credit: Reuters/Jonathan Ernst WASHINGTON | Mon Dec 3, 2012 11:16am EST WASHINGTON (Reuters) - Fannie Mae and Freddie Mac said on Monday they would provide a break for borrowers facing foreclosure to ensure those having problems making monthly mortgage payments will remain in their homes during the holidays. Fannie Mae said its eviction moratorium would apply to single-family homes and two- to four-unit properties from December 19 through January 2, 2013. Freddie Mac said it would offer the suspension from December 17 through January 2, 2013. The aid allows families to avoid eviction during that time, but doesn't mean the foreclosure process will be put on hold. The inventory of foreclosed homes remains a problem for the nascent U.S. housing market recovery, and has been weighing on property values. More than 3.5 million homes have been foreclosed on in the last four years, and about 10.8 million borrowers owe more than their properties are worth. "We're taking this step in support of families who have faced financial challenges," said Terry Edwards, executive vice president of credit portfolio management at Fannie Mae. "The holidays are a chance to be with loved ones and we want to relieve some stress at this time of year." The government-backed mortgage lenders encouraged homeowners to promptly reach out for help and also promoted resources for those at risk of losing their home, including mortgage help centers, hotlines and websites with more details on foreclosure alternatives. Both Fannie Mae and Freddie Mac have already provided foreclosure-aid to borrowers with government-owned loans that are dealing with disaster-related damage in the wake of superstorm Sandy. The two companies have had moratoria to relieve burdens for borrowers around the holidays for the past couple of years. Fannie and Freddie, the two largest sources of U.S. housing money, were taken over by the government in September 2008 at the height the financial crisis. The companies do not directly make loans. To provide a steady stream of funds, they buy mortgages from lenders and either hold them or repackage them as securities, which they sell to investors with a guarantee. (Reporting by Margaret Chadbourn, editing by Nick Zieminski) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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