Foreclosure freeze coming for the holidays

Buyers Afraid of What They Are Getting — a Title Mess?

By Les Christie, staff writerDecember 3, 2010: 3:34 PM ET

NEW YORK (CNNMoney.com) — Several of the big mortgage players are playing Santa Claus again this year, saying they will not evict borrowers in default during the two weeks surrounding Christmas.

Freddie Mac (FMCC) and Fannie Mae (FNMA), the two government-controlled mortgage giants, are freezing all foreclosure evictions on mortgage loans they own or back from Dec. 20 through Jan.3.

Evictions mark the end of the foreclosure process. After the home is sold at foreclosure auction — or banks take possession of the home — owners must leave the property or face eviction notices.

“If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays,” said Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac.

For some of the big private banks, who also usually observe a freeze during the holidays, the situation is a little different this year, thanks to moratoriums they already have in place because of the robo-signing scandal.

That freeze was initiated to give the banks time to examine whether they violated any legal procedures in processing foreclosures and to correct and refile questionable documents they uncover.

A spokesman for Bank of America (BAC, Fortune 500), Rick Simon, said that made addressing this year’s situation a little awkward but it would still observe its usual holiday policy.

“Bank of America’s practice in recent years [is to hold off on] foreclosure sales or evictions from late December through New Year’s Day on loans held in our investment portfolio or that are owned by investors who give the bank delegated authority,” he said.

It will continue the foreclosure process for loans it services that are held by investors who decline to participate in the freeze and for properties that are known to be vacant.

A spokesman for Chase Mortgage, a division of J.P. Morgan Chase (JPM, Fortune 500), said its robo-signing-connected moratorium makes an additional holiday freeze moot; it will still be several weeks before it starts to evict borrowers again.

Wells Fargo’s (WFC, Fortune 500) holiday freeze will run the same two week period as Fannie’s and Freddie’s and will, like Bank of America’s, include all loans it holds in its portfolio. For the other loans it services, it will follow guidelines from investors and from the states where the properties are located.

With the number of bank repossessions amounting to around 100,000 a month recently, the temporary reprieve could affect tens of thousands of borrowers in default. To top of page

10 Responses

  1. Dying Truth, go to California laws located on home page of this site

  2. […] Foreclosure freeze coming for the holidays […]

  3. John,
    What state? where can you find the opinion? is it available on google scholar, west law, lexus? citation reference number or link?

  4. Must read article, this is just a small portion:

    “No strings attached.” Financial reporter Barry Grey unleashes the truth:

    Fed report lifts lid on Great Bank Heist of 2008-2009

    The banks and corporations that benefited were not even obliged to provide an account of what they did with the money. The entire purpose of the operation was to use public funds to cover the gambling losses of the American financial aristocracy, and create the conditions for the financiers and speculators to make even more money.

    All of the 21,000 transactions cited in the Fed documents―released under a provision included, over the Fed’s objections, in this year’s financial regulatory overhaul bill―were carried out in secret. The unelected central bank operated without any congressional mandate or oversight.

    The documents shed light on the greatest plundering of social resources in history. It was carried out under both the Republican Bush and Democratic Obama administrations. Those who organized the looting of the public treasury were long-time Wall Street insiders: men like Bush’s treasury secretary and former Goldman Sachs CEO Henry Paulson and the then-president of the New York Federal Reserve, Timothy Geithner….

    The Fed documents show that the US central bank enabled banks and corporations to offload their bad debts onto the Fed’s balance sheet. Now, in order to prevent a collapse of the dollar and a default by the US government, the American people are being told they must sacrifice to reduce the national debt and budget deficit.

    But as the vast sums make clear, the “sacrifice” being demanded of working people means their impoverishment―wage-cutting, mass unemployment, cuts in health care, Social Security, Medicare, Medicaid, etc.

    The very scale of the Fed bailout points to the scale of the financial crash and the criminality that fostered it…. The entire US capitalist economy rested on a huge Ponzi scheme that was bound to collapse…

    The banks were able to take the cheap cash from the Fed and lend it back to the government at double and quadruple the interest rates they were initially charged―pocketing many billions in the process….

    The ongoing saga of the looting of the economy by the financial elite puts the lie to the endless claims that “there is no money” for jobs, housing, education or health care. The ruling class is awash in money.

    http://dandelionsalad.wordpress.com/2010/12/08/wall-streets-pentagon-papers-biggest-financial-scam-in-world-history-12-3-trillion-in-taxpayers-money/

  5. [youtube=http://www.youtube.com/watch?v=q8vFbZ4J8kQ&fs=1&hl=en_US]

  6. Ortiz is based on a Ca appellant decision….Good stuff

  7. In California, nonperfected title’s is a defense possibly in a UD action. See Chase Bank v. Ortiz et al….This is new stuff

  8. I have just noticed on my Pretender/lender loan that it has gone past the statute of limitations period, which is very interesting indeed. Check the period of the statute of limitations for your state. Google statute of limitations (your state). http://www.challengingforeclosure.com Sirak@challengingforeclosure.com

  9. anybody read Janet Tavakoli’s presentation on the secondary market? This was all done to feed the older bonds that had run into defaults and prepayments. Yes, my friends, the truth is coming out.

  10. Just because the banks sells your home at auction doesn’t mean it’s over yet. Fight the eviction!!! Fight, fight, fight! Fight those Unlawful Detainers.

    Time to unleash the effin fury on these banksters. Enough already!

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