08 Jan Fannie Mae Stops Its Foreclosure Sales, Evictions
Fannie Mae announced today that it is stopping foreclosure sales and evictions of single-family properties through January 31, 2009. The temporary suspension is to give Fannie Mae time to work with mortgage servicers to implement the Streamlined Modification Program (SMP).
According to Fannie Mae, the “SMP is aimed at the borrower who has missed three payments or more, owns and occupies the primary residence, and has not filed for bankruptcy. The program creates a fast-track method for getting troubled borrowers into an affordable monthly payment through a mix of reducing the mortgage interest rate, extending the life of the loan or even deferring payments on part of the principal. Servicers have flexibility in the approach, but the objective is to create a more affordable payment for borrowers at risk of foreclosure.”
Fannie Mae says it will reconsider workouts with borrowers that have previously applied under its Second Look initiative.
This moratorium only involves foreclosures of mortgage loans backed by Fannie Mae.
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