Bank Foreclosures Halted For Holidays, And Other Good News
By Carlos Wilks on December 4, 2010, 6:33 am
After the beating that Realtors, bankers, and investors took over the recent foreclosure fiasco, it’s a wonder that commercial lenders are following suit with the big government giants, Freddie Mac (FMCC) and Fannie Mae (FNMA), but they are. What’s happening is that Freddie Mac and Fannie Mae , the two government-controlled mortgage giants, are stopping all foreclosure eviction processes on mortgage loans they have from Dec. 20 through Jan.3, really, no kidding.
Several Lenders Participating Beside Freddie/Fannie
Yes that’s right, not only are the government agencies doing it, but several of the bigger mortgage companies are acting on Santa Claus fantasies again this year. They are saying that they will not follow through and evict borrowers that are in default, but just for the holidays. Many are saying that if their property is occupied, they have instructed their foreclosure attorneys to suspend the evictions. This in order to help provide a greater measure of certainty to families during the holidays.
Participating Lenders We Know Of
I say “we know of” because this list is liable to change, but the Bank of America’s recent practice has been to hold off on their foreclosure sales or evictions starting in late December and lasts through New Year’s Day. Chase Mortgage, a division of J.P. Morgan Chase (JPM, Fortune 500), claims that their robo-signing-connected moratorium makes a holiday freeze ineffective as it will be several weeks before they can start to evict again. Wells Fargo’s (WFC, Fortune 500) holiday freeze will run for the same two weeks as Fannie’s and Freddie’s and will include all loans they have in their portfolio.
A Bit Of Holiday Cheer
Other good news is that the acting Comptroller of the Currency John Walsh, has instructed lending institutions to stop their so called Fast-trac system they use for lender that receive loan modification loans. This is where the lender will start the foreclosure process even though the defaulted borrower gets a modification loan. This has always been a process that is seen as bad for the borrower, and good for the lender.
Related posts:
- Bank Of America Resumes Foreclosures, Code Enforcers Have Troubles
- Bank Foreclosure Fiasco: Holiday Respite, Reasons, And Thoughts
- Bank Foreclosure Review Jobs On Rise Amid Investor Tension
- Record Low Mortgage Rates Coming To An End: Get Creative To Save
- Prolonged Foreclosures Do Not Bode Well For Americans
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