Friday, January 09, 2009

Foreclosure Suspensions Extended Through January

Fannie Mae and Freddic Mac have extended the suspension of foreclosure sales and evictions from single-family homes until the end of January.

Both companies had suspended foreclosures during the holidays, but were expected to end the suspension after January 9.

The home loan giants said the extension will allow borrowers facing foreclosure to keep their homes as it works with mortgage servicers to find options for troubled mortgage holders under the Streamlined Modification Program.

Fannie and Freddie began the modification program in December in an effort to create more affordable mortgage payments for homeowners at risk of foreclosure.  The program is for homeowners that have missed three payments or more, own and occupy their homes, and have not filed for bankruptcy.

The program allows homeowners to reduce their interest rate, extend the life of the loan or defer payments on part of the principal.

Fannie personnel have been reviewing seriously delinquent loans to see of homeowners have been contacted and every effort to work out their situations have been exhausted.