"At this time of year we want to bring some relief to families who confronted financial difficulties and went through foreclosure,” says Chris Bowden, senior vice president of REO at Freddie Mac.
The GSEs are also encouraging struggling homeowners to contact their servicers for help to avoid foreclosure. “We encourage any homeowner who is having difficulty making their mortgage payment to reach out for help right away.” Fannie Mae will continue to help borrowers avoid foreclosure whenever possible, according to Fannie chief operating officer Terry Edwards.
The CFO also noted that Fannie introduced a streamlined loan modification program this summer that is helping more borrowers stay in their homes and avoid foreclosure.
During the eviction moratorium, attorneys for the GSEs may continue to file documentation in preparation for evictions scheduled after the suspension ends, says Freddie.
Fannie notes that “legal and administrative proceedings for eviction may continue” during the moratorium. But “families living in foreclosed properties will be allowed to remain in their home.”