Fannie Mae To Halt Foreclosures and Evictions During November 26 to Jan 9

In an unprecidented move, Fannie Mae has taken an extraordinary step in expressing its commitment to working with homeowners who are suffering from the national housing crisis. In show of Fannie Mae’s commitment to American homeowners, Fannie Mae has suspended all foreclosure sales on all occupied single family homes where the completion of the eviction is supposed to happen between November 26, 2008 and January 9, 2009.

Why Did Fannie Mae Halt Foreclosures?
Fannie Mae halted foreclosures and evictions between November 26 and January 9 to allow more resources within Fannie Mae to put together the streamline loan modification program with the Federal Housing Finance Agency, Freddie Mac and Fannie Mae. This time allow homeowners facing foreclosure some additional time to get their home loan modified under the new streamlined loan modification program that is scheduled to launch December 15, 2008.
Additionally, it is the hope of Fannie Mae that this extra time period will allow homeowners facing foreclosure and eviction more time to retain their homes and workout a solution with their Fannie Mae loan servicer or mortgage company.

What Can A Home Owner Expect To See About The Foreclosure Process Being Halted?
Homeowners who still live in their homes, and who are scheduled for a foreclosure sale date between November 26 and January 9 should receive a letter from the servicer, foreclosure attorney, or trustee informing the homeowner of the suspension of foreclosure proceedings and evictions against the homeowner. Homeowners should continue to work to resolve their delinquent situation with their mortgage company by working through Fannie Mae’s foreclosure prevention options available to them.

Example Of Letter Being Sent To Homeowner Facing Foreclosure Sale That Is Being Suspended

– Law Firm or Trustee Company Name –
– Date –
– Borrower/Co-Borrower Name –
– Borrower/Co-Borrower Address –

RE: Halting of Foreclosure Sale

Loan No.:
Loan Servicer:
File No.:

Property Address:

Dear Borrower:

Your loan was scheduled for a foreclosure sale between November 26, 2008 and January 9, 2009. Fannie Mae, the investor with respect to your loan, instructed us to temporarily halt the foreclosure sale to provide you with additional time to explore all potential alternatives to foreclosure, which may include the recently-announced streamlined modification program.

We strongly encourage you to contact your loan servicer immediately to determine whether you are eligible for various options to avoid foreclosure. Depending upon your circumstances, these alternatives may include:

Repayment Plan: an agreement to pay the delinquency over a series of months.

HomeSaver Advance™:* an unsecured loan that cures the mortgage delinquency.

Loan Modification: altering the loan terms to cure the delinquency and/or reduce the amount of the loan payments.

Pre-foreclosure Sale – Short Sale: agreement between you and the loan servicer to sell the property for less than the amount owed.

Deed in Lieu of Foreclosure: a voluntary transfer of ownership of the property to the lender in exchange for cancellation of the mortgage debt.

Again, please contact your loan servicer at your earliest opportunity to discuss these options.

If you are unable to reach an agreement with your loan servicer to resolve the delinquency, the foreclosure may be completed after January 9, 2009.

The contact information for your loan servicer may be found on your mortgage payment statement.

Sincerely,

___________

[Note: The letter may be revised as necessary to comply with applicable law, such as notices required by the Fair Debt Collection Practices Act].

*HomeSaver Advance is a trademark of Fannie Mae.