Fannie, Freddie Renew Foreclosure Moratoriumby Tim Manni
Along with lender announcements to temporarily delay foreclosures, the two giant secondary market buyers of home mortgages are also putting their foreclosures on hold while awaiting the administration’s new foreclosure-assistance plan.
According to this Fannie Mae news release,
Fannie Mae (FNM/NYSE) today announced it is suspending all foreclosure sales and evictions of occupied properties through March 6 in anticipation of the Administration’s national foreclosure prevention and loan modification program.
Ditto for Freddie Mac:
Freddie Mac (NYSE: FRE) today announced it is immediately suspending all foreclosure sales involving occupied single family and 2-4 unit properties with Freddie Mac-owned mortgages through March 6, 2009. The suspension does not apply to vacant properties.
The extension will provide servicers with more time to help troubled borrowers find an alternative to foreclosure.
A lot is riding on Treasury Secretary Geithner’s still-to-be-announced plan. Here’s hoping the markets react to it better than they did to the pre-announcement of the announcement.