Wednesday, January 20, 2010

Foreclosure freezes thaw out

Suspensions on home foreclosures by major mortage lenders during the holiday season have come to an end. Last month the Associated Press ran this holiday news story about Fannie Mae and Freddie Mac:
WASHINGTON – Mortgage finance companies Fannie Mae and Freddie Mac are suspending foreclosures and evictions for about two weeks in a temporary break for borrowers during the holiday season.

The suspension, announced Thursday by the government-controlled companies, runs from Saturday through Jan. 3. "No family should have to face the prospect of being evicted during the holiday season," Michael Williams, Fannie Mae's chief executive, said in a statement.
On Dec. 17, Citigroup, Inc. announced a slightly longer suspension:
NEW YORK (TheStreet) – Citigroup said Thursday it plans to suspend foreclosures for 30 days for homeowners with Citigroup-owned mortgages.

Under the program, which begins Friday, Citigroup will halt all foreclosure sales on first mortgage accounts nationwide through Jan. 17. The bank also will cease evictions.
Despite expectations of fewer foreclosures during the holiday season due to freezes such as these, CNBC’s Diana Olick reported last week that bank foreclosures actually increased during the month of December. According to her Realty Check blog, foreclosures surged by 14 percent.

The City does not receive or maintain records on the number of homes foreclosed on by banks, but anecdotally the foreclosure rate has remained lower than neighboring communities.


  1. Now foreclosures will come back in full gas, since there's no more prohibition

  2. This is a serious point. Since predictions point more foreclosures for 2010