CNN.com recently reported that several big mortgage companies and banks have stated they won’t evict borrowers who have defaulted on their payments during the weeks that surround Christmas, essentially initiating a freeze on foreclosures during the holiday season. Both Freddie Mac and Fannie Mae announced they will freeze all foreclosure evictions on mortgage loans they currently back or own from December 20 through January 3. The two companies are controlled by the government.
One of the executive vice presidents at Freddie Mac, Anthony Renzi, stated, “If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays.”
In foreclosure, eviction marks the completion of the process. After a house is sold at a foreclosure auction, or if the bank takes possession of the house, the owners are required to vacate the property or they will face eviction notices.
Many large banks are also in a unique position this holiday season as investigations regarding robo-signers are underway. Typically banks also observe a freeze during the holidays, but this year there is already a freeze in place because of the scandal. The freeze was instigated to allow the banks time to scrutinize whether any legal procedures were violated in their foreclosure processing, as well as to allow time to re-file any questionable documents that were discovered.
Bank of America said it will still observe its regular holiday policy, which is to hold off on foreclosure evictions or sales from late December through New Years’. However, it will continue the process of foreclosure for loans it services that are held by investors who have opted not to participate in the freeze, and for houses that are already vacant.
Wells Fargo’s holiday freeze will run the same time period as Freddie Mac’s and Fannie Mae’s. Like Bank of America, their freeze will not affect other loans it services that they do not hold in its portfolio, and will follow investors’ guidelines from the states where the properties are located.
Chase Mortgage, a division of J.P. Morgan Chase has stated that suspension connected with the robo-signing scandal essentially makes a holiday freeze a moot point. The company will not be able to evict borrowers for several weeks regardless of whether they instated a freeze.
There are about 100,000 bank repossessions in the United States each month. The temporary amnesty the mortgage companies and banks will initiate will affect tens of thousands of defaulted borrowers, allowing them to have a peaceful holiday season.
If you have questions about filing for bankruptcy or mortgage foreclosures in New Jersey, please don’t hesitate to contact experienced and highly skilled New Jersey mortgage foreclosure lawyer Robert Manchel. He can examine the circumstances surrounding your situation and can help you make the best possible decision for your financial future. Call Mr. Manchel today at 866-503-5655.