Home > Foreclosure > Banks Halt Foreclosures for the Holidays

Banks Halt Foreclosures for the Holidays

Bank ForeclosuresAccording to CNN.com, Fannie Mae, Freddie Mac and several large mortgage lenders have pledged not to foreclose on delinquent borrowers during the Christmas season.

For homeowners with loans through Fannie Mae and Freddie Mac, the moratorium will run from Dec. 19 to Jan. 2. During this time, legal and administrative proceedings for evictions may continue, but families will be allowed to stay in their homes, Fannie said in a statement. Chase Mortgage said it will not evict anyone between Dec. 22 and Jan. 2. Bank of America said that it would “avoid foreclosure sales or displacement of homeowners or tenants around the Thanksgiving and Christmas holidays.”

Wells Fargo will also suspend evictions during that period, but will not shut down its eviction machinery entirely. The bank said it will observe the moratorium on foreclosed properties in its own portfolio but for loans it services for other lenders “foreclosure-related actions may still occur.”

While this a welcomed temporary reprieve, struggling homeowners over the holidays, come the New Year, everyone will be back to business.

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