Mortgage giants Fannie Mae and Freddie Mac reported this week that they have extended a moratorium on foreclosure suspensions for another three weeks, directing the mortgage servicers they work with to postpone any foreclosure or eviction proceedings through January 31.
Under the original moratorium, which began Nov. 26 and was scheduled to lapse on Jan. 9, 6,000 homeowners would avoid bank repossession and eventually qualify for mortgage modifications.
Hopefully, the extension should give servicers more time to help these at-risk homeowners enroll in the companies' Streamlined Modification Program.
That program is aimed at helping borrowers who are 90 days or more late on payments, who own and occupy their primary residences and who have not filed for bankruptcy to reduce mortgage payments to no more than 38% of their income. I am sure other lender will be following shortly if they already haven't flexed their rules a bit.
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