Fannie, Freddie Suspend Foreclosures Pending Administration’s Housing Plan

13 Feb

Carrie Bay | 02.13.09

Mortgage giants Fannie Mae and Freddie Mac announced on Friday that they are suspending all foreclosure sales and evictions of occupied properties through March 6th, in anticipation of the Obama Administration’s national foreclosure prevention and loan modification program.

Treasury Secretary Timothy Geithner touched on the idea of a national mortgage relief program when he outlined the new administration’s Financial Stability Plan on Tuesday, but did not divulge any details on the specifics of the program. Geithner promised congressional leaders in a follow-up hearing that the program would be finalized within the next three weeks.

In a concerted effort to offer the full spectrum of assistance to troubled borrowers facing foreclosure, a number of large lenders also committed to a temporary foreclosure moratorium this week – holding out for a March 6th deadline for the government’s housing and mortgage aid initiative.

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

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