Freddie Mac and Fannie Mae Announce Ban on Foreclosures Until Jan. 2009

Mortgage finance giants Fannie Mae and Freddie Mac revealed Thursday afternoon they will work to keep Americans in their homes, announcing a suspension on foreclosures starting Nov. 26, 2008 until Jan. 9, 2009.

The two companies said no evictions will take place during that time period.

Furthermore, they instructed loan servicers and attorneys working for them to suspend foreclosure sales of single-family homes.

The release on Fannie Mae's website said, "The temporary suspension of foreclosures is designed to allow affected borrowers facing foreclosure to retain their homes."

The release from Freddie Mac had a similar reasoning: "The temporary suspension is also expected to give servicers more time to help borrowers avoid foreclosure."

By Megan Ainscow and edited by Sarah Sussman
©CEP News Ltd. 2008