OK, this is breaking news from the Fannie Mae News Releases:

Fannie Mae Suspends Foreclosure Sales Pending Administration Announcement

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today announced it is suspending all foreclosure sales and evictions of occupied properties through March 6 in anticipation of the Administration's national foreclosure prevention and loan modification program.

The company had previously put in place a suspension of foreclosure sales through January and had previously suspended all evictions through the end of February. In addition, the company adopted a national Real Estate Owned (REO) Rental Policy that allows renters in Fannie Mae-owned foreclosed properties to remain in their homes or receive transitional financial assistance should they choose to seek new housing.

I see this as a huge step forward in getting our markets back to normal.  The constant flow of short sale properties with owners selling just to avoid giving the house back to the bank, is a significant drag on the economy. 

Here in the Seattle area, I would say that the endless flow of distressed home sales is what is still brining prices down.  If we can slow or stop the flow of homes coming on to the market in 'must sell or else' positions, I think our local market will rebound substantially.

Of course at this time, this only affects those people with Fannie Mae owned loans, but hopefully all the other lenders will follow suit, or at the very least we will get some solid legislation that will actually do something to prevent the cascade of pre-foreclosure listings we are seeing all across the country.

For those of you that are headed down that road, and have the bank biting at your heels, here is a government web site where you can find some resources to help keep you in your home and find a solution for your present mortgage issues.

FORECLOSURE PREVENTION

If you are in a painful position with your home loan, I definitely encourage you to check out these resources before you give up and let your home go back to the bank.  If you get to a point where you HAVE to sell, I will definitely do my best to get your home sold before the bank gets it back.  But I want you to stay in you home if possible!  There are plenty of other homes out there for me to sell, and I would rather keep you in your home until the market recovers and then help you out.  I will be watching for any more up dates, and if you have any questions or need any help call me at 425-773-3149 or send me an email at Jacquie@JacquieCliff.com