Fannie And Freddie Suspend Foreclosures Until January 2009

In order to support their streamlined modification program announced on Nov. 11, Fannie Mae and Freddie Mac have issued notices to their loan servicing organizations and retained foreclosure attorneys, directing them to suspend foreclosure sales on occupied single-family properties as well as the completion of evictions from occupied single-family properties scheduled to occur from Nov. 26, 2008, until Jan. 9, 2009.

The temporary suspension of foreclosures is designed to allow affected borrowers facing foreclosure to retain their homes while the agencies work with mortgage servicers to implement the streamlined modification program scheduled to launch Dec. 15.

Foreclosure attorneys and loan servicers will be instructed to use the additional time to reach out to borrowers who have defaulted on their loans and continue to pursue workout options.

Sources: Fannie Mae, Freddie Mac

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