Fannie and Freddie Halt Holiday Evictions

Both Freddie Mac and Fannie Mae announced today that they are suspending evictions of foreclosed single family and 2-4 unit properties during the upcoming holiday season.  The holiday suspensions are in addition to localized suspensions of both foreclosure sales and evictions announced earlier in response to Hurricane Sandy.

Fannie Mae said legal and administrative proceedings for evictions may continue under the directive, but families living in foreclosed properties will be allowed to remain in the home during the suspension period.  Freddie Mac explained that  the two-week holiday suspension will only apply to eviction lockouts on Freddie Mac-owned REO homes and will not affect other pre- or post-foreclosure processes and law firms handling local evictions will continue to file documents in preparation for evictions scheduled after January 2, 2013.

The dates of the suspensions differ slightly between the GSEs with Fannie Mae suspending from December 19 to January 2 and Freddie Mac from December 17 to the same end date.  The Hurricane Sandy suspensions in areas designated for assistance by FEMA will continue until February 1 for Fannie Mae mortgages and through February for Freddie Mac's.

"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, Fannie Mae. "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."