Dec. 09--In what's become yearly tradition, Fannie Mae and Freddie Mac said Tuesday they will suspend evictions at foreclosed single-family properties during the holiday season.
People will be allowed to stay in foreclosed properties, including houses and condos, from Dec. 17 through Jan. 2. But both companies said legal and administrative proceedings for evictions may continue during that period.
The moratorium will not affect foreclosure activities before or after those dates.
In Chicago, more than 18,000 properties are in some stage of foreclosure, according to RealtyTrac, a website that tracks foreclosures. In October, foreclosure filings were up 22 percent from the same month last year.
Fannie Mae and Freddie Mac don't originate mortgages themselves. Lenders sell loans that meet specific criteria of the two agencies. In turn Fannie Mae and Freddie Mac package the loans into securities and sell them to investors. Because the investments are guaranteed, an investor is still made whole if a homeowner defaults on a mortgage, and the agencies can force a lender that originated a mortgage that went bad to buy it back.
Homeowners having trouble with their Fannie Mae-backed mortgage can call 800-732-6643 or visit knowyouroptions.com. For troubles with Freddie Mac-backed loans visit its website at freddiemac.com
acancino@tribpub.com
Twitter @WriterAlejandra
