Fannie Mae & Freddie Mac Kick Off The Holidays With Yearly Moratorium On Foreclosures

For three years in a row, we’ve been able to take note of a particularly heartwarming act by two of the country’s largest mortgage giants, Fannie Mae and Freddie Mac. Just as the two companies did in 2011 and 2010, they announced today that they’ll suspend all bank repossessions of homes starting Dec. 19 and Dec. 17, respectively, running through January 2, 2013. That simple act could help homeowners ensure they can stay home for the holidays.

“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, via CNNMoney.

The temporary moratorium won’t include other pre- or post-foreclosure activities that may already have been set in motion, including notices of default or setting up a time to auction homes. Fannie says other legal and administrative proceedings will continue on as normal during that time.

Fannie and Freddie aren’t the only ones proving their hearts aren’t two sizes too small: Bank of America says it will stop foreclosure evictions for any loans it owns or services for investors during the holidays.

Meanwhile JPMorgan Chase, Wells Fargo and Citibank previously announced they’d halt evictions for victims of Hurricane Sandy in New York, New Jersey and Connecticut. That moratorium is scheduled to continue through February.

Fannie and Freddie halt foreclosures for the holidays [CNNMoney]