The holidays are a time when we find the best in ourselves and in each other. It’s a season of giving, when anything is possible.
Even notoriously Scrooge-ish entities have found their collective hearts this winter.
The Christmas Foreclosure Moratorium
Fannie Mae and Freddie Mac appear to have been overcome by the Christmas spirit. These two big-name mortgage lenders, among several other large banking operations, have pledged not to go through with home foreclosures during the holiday season.
The moratorium on foreclosure proceedings will extend from December 19 to January 2. Legal and administrative proceedings will all continue in the normal fashion, but no families will be evicted from their homes by these lending companies.
“No family should be forced to give up their home during this holiday season,” said a company spokesperson according to an article on CNN Money [insert source link here].
The “Fine Print”
The policy only applies to loans that these lenders hold themselves. When Fannie, Freddie, B of A, or other banks are acting as service providers for third party loan owners, they are bound to abide by the wishes of the loan holder. If that third party wants to see an eviction proceed, the banks must comply.
Time to Plan
It may not be a Christmas miracle, but at least it’s a Christmas moratorium. For a few lucky families, that reprieve may be the time they need to get current on payments and stave off foreclosure.
For others, it’s a chance to rally the troops. If you don’t have the money to get current on your debt, don’t lose heart. Use this time to search out foreclosure prevention measures that can help you stay in your home.
CNN Money: “Fannie Mae, banks halt foreclosures for the holidays,” Les Christie, Dec. 1, 2011