Fannie and Freddie Suspend Foreclosures for the Holidays

The mortgage finance giants recently announced a loan modification initiative.

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Government-controlled mortgage finance giants Fannie Mae and Freddie Mac are allowing a limited number of distressed borrowers to wear their construction-paper pilgrim hats and leave cookies out for Santa before deciding whether or not to toss them onto the streets.

From The Associated Press:

Mortgage finance companies Fannie Mae and Freddie Mac are suspending foreclosures for about 16,000 households during the holiday season.

The two companies said Thursday that they will halt foreclosure sales between Nov. 26 and Jan. 9, while they evaluate whether borrowers qualify for a new loan modification program announced last week.

Fannie Mae said about 10,000 households would be affected, while Freddie Mac said the changes would affect about 6,000 borrowers who are facing foreclosure. The change does not apply to vacant homes.


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