Call it a holiday reprieve. The nation’s two federal mortgage corporations, together with one of the nation’s leading banks, will halt evictions of homeowners in foreclosure until the holidays pass.
The Federal National Mortgage Association (PINK:FNMA) and the Federal Home Loan Mortgage Corp. (PINK:FMCC) — better known as Fannie Mae and Freddie Mac — say homeowners facing foreclosure won’t have to worry about being removed from their homes for two weeks, starting on Dec. 17. However, the reprieve will last only until the New Year. Evictions will start again on Jan. 2, CNNMoney noted.
Bank of America (NYSE:BAC) will also suspend evictions from foreclosed properties until after the holidays. Other banks, including Wells Fargo (NYSE:WFC), JPMorgan Chase (NYSE:JPM) and Citibank (NYSE:C), have yet to announce whether they’ll do the same.
But while Freddie and Fannie are stopping evictions for the holidays, that doesn’t mean all foreclosure activities will be halted. Other proceedings, including arranging auctions and filing legal notices, will proceed as normal.