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Foreclosure and Distressed Properties Sale and Evictions Put on Hold

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By : John Cutts    99 or more times read
Several lenders and mortgage firms in the U.S. have announced that, two weeks prior to Christmas day, the eviction of foreclosed homeowners will be put on hold. Some have also announced that distressed properties sale will be suspended, but processing of foreclosures will continue.

Home auctions might continue for some, but housing market observers stated that it is also likely that hardly any will be held during the weeks leading to Christmas Day. The hold on evictions has been announced by various industry players, including government-sponsored enterprises Fannie Mae and Freddie Mac. The mortgage firms revealed that evictions involving loans under their books will be put on hold from December 20 to January 3.

According to a number of mortgage lenders, owners of properties under listings of bank foreclosure homes will be allowed to stay in their homes for the holiday season. Even properties that have already been sold at foreclosure auctions will be included in this exemption, lenders have added. Foreclosure lawyers have reportedly been instructed to suspend evictions on occupied foreclosed dwellings.

For lenders who have implemented a moratorium on foreclosure and distressed properties sale a few months ago following the robo-signing and affidavit-related controversies, most of them announced that they would still observe the usual suspension of evictions during Christmas although this would mean that they will be suspending such activities twice in a span of just a few months.

Owners of Fannie Mae and Freddie Mac foreclosed properties will have some reprieve during the Christmas season and they will be joined by holders of mortgages under the portfolio of Bank of America as BofA has also announced its usual suspension of activities for the holidays. For the part of Chase Mortgage, the lender also announced that it will be weeks before they resume evictions on foreclosed properties.

Another lender that announced a holiday-related freeze was Wells Fargo. Officials from the bank have stated that activities involving mortgages under their books will be put on hold during the same 14-day period as Fannie Mae's and Freddie Mac's. The hold on evictions and distressed properties sale is expected to lighten some of the burdens faced by defaulting borrowers and foreclosed homeowners in the U.S.

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