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Foreclosure freeze coming for the holidays

By
Mortgage and Lending with AmeriFirst Financial BUYorREFI Team NMLS - 1330840

NEW YORK (CNNMoney.com) -- Several of the big mortgage players are playing Santa Claus again this year, saying they will not evict borrowers in default during the two weeks surrounding Christmas.

Freddie Mac (FMCC) and Fannie Mae (FNMA), the two government-controlled mortgage giants, are freezing all foreclosure evictions on mortgage loans they own or back from Dec. 20 through Jan.3.

Evictions mark the end of the foreclosure process. After the home is sold at foreclosure auction -- or banks take possession of the home -- owners must leave the property or face eviction notices.

"If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays," said Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac.

For some of the big private banks, who also usually observe a freeze during the holidays, the situation is a little different this year, thanks tomoratoriums they already have in place because of the robo-signing scandal.

That freeze was initiated to give the banks time to examine whether they violated any legal procedures in processing foreclosures and to correct and refile questionable documents they uncover.

A spokesman for Bank of America (BACFortune 500), Rick Simon, said that made addressing this year's situation a little awkward but it would still observe its usual holiday policy.

"Bank of America's practice in recent years [is to hold off on] foreclosure sales or evictions from late December through New Year's Day on loans held in our investment portfolio or that are owned by investors who give the bank delegated authority," he said.

It will continue the foreclosure process for loans it services that are held by investors who decline to participate in the freeze and for properties that are known to be vacant.A spokesman for Chase Mortgage, a division of J.P. Morgan Chase (JPM,Fortune 500), said its robo-signing-connected moratorium makes an additional holiday freeze moot; it will still be several weeks before it starts to evict borrowers again.Wells Fargo's (WFCFortune 500) holiday freeze will run the same two week period as Fannie's and Freddie's and will, like Bank of America's, include all loans it holds in its portfolio. For the other loans it services, it will follow guidelines from investors and from the states where the properties are located.With the number of bank repossessions amounting to around 100,000 a month recently, the temporary reprieve could affect tens of thousands of borrowers in default. To top of page

Posted by

 

Michael Beckham
Mortgage Loan Orginator | NMLS 1330840
AmeriFirst Financial, Inc. | NMLS 145368
8476 W. Thunderbird Road, Suite 202, Peoria, AZ  85381

Office: 480-225-6699 | Direct: 480-289-7623 | Fax: 480-339-1635
mbeckham@amerifirst.us | www.buyorrefi.com

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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

The big mortgage companies did this last year, also. I think it's a nice thing to do to already financially stressed out people, during a financially stressful holiday. Why add to the stress load. And there are probably families that don't have any place to go.

Dec 05, 2010 11:03 AM
Rhett Laufenburger
Fairway Independent Mortgage Corp - Peoria, AZ
Sun City West AZ Mortgages

I get so confused when they freeze or dont freeze.  I thought they just said it was unfreeze time.  Seems like they are on and off like the weather.  Unless if you live in AZ then its just beautiful.  Thanks for the post Michael.

Dec 07, 2010 06:59 AM