Foreclosure and Short Sales News

Fannie Mae and Freddie Mac, both government-controlled mortgage finance companies, had suspended foreclosure sales and evictions on foreclosed properties from the winter holidays until the end of this month. Together, the companies own or guarantee around half of U.S. home loans and were seized by federal regulators last fall amid the market meltdown.

On Friday, February 13, the mortgage finance companies said they have immediately suspended all foreclosure sales involving occupied single-family and 2-4 unit properties through March 6, to give troubled borrowers more time to work with loan servicers and avoid losing their homes.

Vacant properties in foreclosure are not affected by this move to help prevent foreclosure.

JPMorgan Chase and Citigroup Inc. announced plans Friday to temporarily halt foreclosures as the government works to finalize the details of a financial rescue package. Citi said the moratorium is effective Feb. 12 and will remain in place until March 12, or until the Obama Administration finalizes the details of its loan modification program, whichever comes first, the bank said.

The Obama administration is expected to roll-out its national foreclosure prevention and loan modification program on Wednesday. The White House said President Barack Obama will outline his plan to spend at least $50 billion to prevent foreclosures during his speech in Arizona, one of the states hardest hit by the foreclosure crisis.

Freddie Mac said it gives lenders who service its mortgages, broad authority to provide forbearance to borrowers who are not yet delinquent. It also allows for permanent rate reductions, mortgage term extensions, forbearance of principal or other modifications to borrowers who are already delinquent.

Those with vacant properties in foreclosure should contact ShortSaleHoldings.com for a free consultation to see how the foreclosure can be stopped.

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