Freddie Mac and Fannie Mae announced today that they would stop foreclosures altogether from November 26 – January 9. That is the day before Thanksgiving through the end of the week of Epiphany.
So, a little present to be thankful for. The reason that Fannie and Freddie are stopping foreclosures of occupied single-family homes is to give servicers of Fannie and Freddie loans time to modify the loans under the streamlined modification program that goes into effect on December 15.
That is the governments program that goes along with the bailout bill to adjust the term or the interest rate of the loan, and in some cases to extend the repayment of some principle balance to the end of the loan, as a balloon note. To qualify the homeowner has to be 90 days or greater delinquent on his mortgage, and not have filed for bankruptcy.
I would suspect that other servicers will begin to follow suit, and will get even more aggressive in modifying loans that they own and service.
This means that around metro Atlanta, the courthouse steps will be a lot more empty on the first Tuesday of December and January. And, a lot of folks who were sweating the holidays coming, will have a Christmas cheer, and plenty to be thankful for, after all.
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