Fannie Mae, Freddie Mac ease up on evictions over the holidays
Residents of recently foreclosed homes will get a break from being kicked out over the holidays.
The ongoing tradition of halting foreclosure evictions over the holidays will continue again this year thanks to new eviction moratoriums by Fannie Mae and Freddie Mac, the government-backed associations that buy housing assets like mortgages from lenders across the country.
From December 18 to January 2, no one with a foreclosed mortgage owned by Fannie Mae or Freddie Mac will be evicted from their home. The Fannie Mae moratorium applies to occupants of single-family or two- to four-unit multifamily properties. It’s not always obvious whether a mortgage is owned by one of the associations – they own trillions of dollars worth of homes – because the original lender may still service the loan payments. Discover if they own your mortgage using the Fannie Mae Loan Lookup and Freddie Mac Loan Look-Up Tool.
“We’re taking steps to support families and to extend the timeline of help for struggling borrowers during the holidays,” Fannie Mae vice president of single-family distressed assets Jacob Williamson said.
Despite plunging mortgage delinquency rates, outside factors like natural disasters or job losses still create housing crises for millions of Americans. Freddie Mac will also not foreclose on homeowners who are behind on their mortgage payments in disaster areas hit by Hurricanes Harvey, Irma and Maria.
Meanwhile, the eviction moratoriums will not halt the legal paperwork that accompanies the foreclosure process. Documentation can continue to be filed, but families will not be asked to move out.
If other debts are keeping you from making monthly mortgage payments, consider consolidating them to reduce your minimum payments or cut your interest costs. New providers are continually popping up, so it pays to compare debt consolidation options.
Additionally, millennials are taking advantage of low interest rates to refinance their home loans in record numbers.