Lakewood Ranch, FL Blog

I suppose it's something of a Christmas Miracle...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.

It's a shame that this is even noteworthy but I guess it took an executive decision to not throw families out on the street during the holidays.  The suspension, announced Thursday by the government-controlled companies, runs from this 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.  I'd say that no family living in their principle homestead property should be evicted in this economy when there are so many other possible alternatives.  I don't advocate a something for nothing or a giveaway approach but why not refinance all of these loans using today's current low rate and extend the period of the loan or create a balloon--something that gets the monthly payment under control.  It is better for everyone to keep these properties occupied than it is to have them go to foreclosure.

I just completed training to become certified as a "SFR" or Short Sale and Foreclosure Resource and while much of the program focused on assisting buyers and sellers of short sale and foreclosure properties, there was also an emphasis on helping borrowers avoid foreclosure, too.

We hear everyday from folks who are facing or have already been thru foreclosure.  There are programs and initiatives to help but they are still limited as to who can use them and I've read that many banks are not exactly helpful when it comes to implementing these programs.  A new program promises to assist with loans outside of Freddie and Fannie but we'll see how effective that program will be.  Lenders aren't required to live by it until April.

Fannie and Freddie are only part of the picture but at least they are willing to suspend the foreclosure and eviction process for a little while.  It's not enough but it is a start.  Let's hope that things get better next year.

Merry Christmas, Happy Hannukah and here's to a Happy 2010!