Very interesting article about how Fannie Mae and Freddie Mac are postponing evictions briefly so that they occur at the very beginning of next year.
This reprieve comes as a bit of year-end, quasi government foreclosure help. A representative from Fannie Mae calls the measures an attempt “to relieve some stress at this time of year.”
Both Freddie Mac and Fannie Mae will suspend repossessions beginning the week before Christmas, and will resume at the very beginning of 2013.
Over the past few years, mortgage lenders have had their butts handed to them both financially, and in the eyes of the public. The predatory lenders among them have blemished the entire industry. The recession has made lenders more cautious about lending to anyone, except those with pristine credit.
So this small bit of holiday cheer may be an effort to repair a badly-damaged public image. It may also be an effort to postpone repossession at the very worst time of the year for selling property; December is usually a very slow month for home sales.
An extra two weeks is an extra two weeks
Two weeks may not seem like much, but if foreclosure is inevitable, it’s two weeks’ worth of rent that doesn’t need to be paid.
If there is a workaround, then it’s an extra two weeks to scurry around for last-minute help to stop foreclosure, if it’s available.
Or, the two weeks could simply be used by families for the purpose that Freddie Mac stated: to spend time with family during the holiday season without a foreclosure sale happening right in the middle. “It’s Christmas!”