"The holidays are a chance to be with loved ones and we want to relieve some stress at this time of year," said Terry Edwards, Executive Vice President of Credit Portfolio Management, Fannie Mae.
It's a holiday miracle! Mortgage giants, Fannie Mae, Freddie Mac and Bank of America, announced on Monday that homeowners going through foreclosures will NOT be evicted...until after the holiday season is over. (Ok, it's not necessary a miracle as the likes of Citibank, Wells Fargo and JPMorgan Chase have suspended foreclosures for the holidays in the past, but still.) According to Freddie spokesman, Brad German, they will suspend all bank repossessions beginning December 17 and December 19. Evictions will not resume until January 2, 2013. But wait! There is some fine print to this generous sentiment, as German states: "the suspension will not affect other pre- or post-foreclosure activities, such as the filing notices of default or the scheduling of auction sales," according to an article in CNNMoney.
That's right, apparently we are all feeling the Christmas spirit, mortgage giants included. All in all, the gesture does show a bit of compassion (although in a press release, Fannie stated that administrative filings will continue during suspension). Foreclosures are economically and emotionally taxing on families, and we wonder if suspending the process will only enable more stress during the holiday season. As one blogger wrote:
"Extending a foreclosure sounds nice, but the healing starts right after the foreclosure, not before or during!" What do you think? Naughty or nice?