Banks agree to holiday break for foreclosures

Several of the nation's major banks have announced their intention to follow the lead set by GSEs Fannie Mae and Freddie Mac and suspend foreclosure proceedings for the holidays, beginning December 19 and ending January 2.

Several of the nation's major banks have announced their intention to follow the lead set by GSEs Fannie Mae and Freddie Mac and suspend foreclosure proceedings for the holidays, beginning December 19 and ending January 2.

During that time period, borrowers delinquent on their mortgages will not be evicted by participating lenders, although the administrative process may continue, according to CNNMoney. At least two banks indicated they would put a hold on foreclosure proceedings for properties in their own portfolios, but might continue activity for loans they service on behalf of other lenders, depending on the policies those parties choose to set.

"No family should have to give up their home during this holiday season," said Fannie Mae executive vice president Terry Edwards in a recent statement.

This could affect a large number of homeowners, the news source reports, based on RealtyTrac data that shows an average of 89,000 foreclosure auctions were scheduled to take place during each month of 2011.

A spokesman for the data and analytics firm told the news source some borrowers might receive a more long-term benefit if they manage to find the money they need to get current on their mortgage payments. While few are likely to be so fortunate, according to the expert, the rest will still enjoy a temporary reprieve.



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