Foreclosure Holiday at Fan & Fred Comes to an End

Posted by Matthew Brian Hersh on April 8, 2009

There weren’t any splashy headlines like there were when, just before the holidays, GSEs Fannie Mae and Freddie Mac announced a foreclosure moratorium, but last week, that freeze came to an end.

The ban applied to foreclosure sales and evictions from houses owned by the mortgage giants as the government tried to come up with homeowner rescue plans.

Since then, the Obama administration unveiled its Homeowner Affordability and Stability Plan to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac by giving $200 billion to the government-controlled mortgage finance companies, as well as the $75 billion Making Home Affordable program.

The foreclosure moratorium, initially set to expire on January 9, was extended repeatedly since that date, but was finally lifted in light of the administration’s initiatives.

According to a Fannie Mae statement that was reported by Rooflines friend Mary Kane in The Washington Independent, “foreclosure sale may not occur on any Fannie Mae loan until the loan servicer verifies that the borrower is ineligible for a Home Affordable Modification and all other foreclosure prevention alternatives have been exhausted.”

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