We all know that the economy is tough and people are hurting right now. Many people are facing foreclosures, but thanks to an announcement by Fannie Mae and Freddie Mac, many will be spared this holiday season. Fannie & Freddie announced that they and many of their servicing agents (mortgage companies) will postpone/suspend all foreclosures until January 9th, 2009. Are Freddie and Fannie showing their soft side during the holiday season?...... I doubt it. While they will surely get some good press and good will, their motivation was to put a hold on foreclosures until they unveil new loan modification programs.
As part of the bailout plan, the government is putting strong pressure on them to “work out” the loans with as many homeowners as possible. The programs and policies won’t take effect until January, which is why they are suspending the foreclosures until then.
Having said that, not all mortgages are back by Freddie or Fannie. Therefore, if you are experiencing trouble and facing foreclosure you want to find out if you qualify for your “stay of foreclosre”.
If you are facing foreclosure, I would recommend the following:
First of all, spend the next few days and take a realistic look at your finances and figure out if you can actually afford the house. If you can, and can demonstrate it, you will most likely be able to work out a decent arrangement with your lender. If not, it may be the right time to liquidate the house by either a straight sale, short sale, deed in lieu or at last resort foreclosure/bankruptcy. Believe it or not, there are more options available to homeowners in distress than you might believe. I am always willing to meet with anyone to assess their situation in a confidential, respectful manner and spell out the options.
Speaking of holidays, I want to wish all my friends, family, clients and of course…my subscribers….lol, a wonderful Thanksgiving. Thanksgiving is time to value your family and be thankful for what you have. No matter what your situation is, I hope you can set the stress aside for a day and enjoy the ones you love. H-A-P-P-Y ….T-H-A-N-K-S-G-I-V-I-N-G !!!
P.S. Please share the blog with any of your friends so they are kept abreast of these important real estate and financial issue.