OfflineMaybe a small one. I found this article on cnnmoney.com talking about how some of the larger banks, Fannie May, and Freddie Mac are suspending foreclosures on home over the holidays.
NEW YORK (CNNMoney) -- Happy holidays struggling homeowners! Fannie Mae, Freddie Mac and several large mortgage lenders have pledged not to foreclose on delinquent borrowers during the Christmas season.
For homeowners with loans through Fannie Mae (FNMA, Fortune 500) and Freddie Mac (FMCC, Fortune 500), the moratorium will run from Dec. 19 to Jan. 2. During this time, legal and administrative proceedings for evictions may continue, but families will be allowed to stay in their homes, Fannie said in a statement.
"No family should have to give up their home during this holiday season," said Terry Edwards, an executive vice president for Fannie Mae.
Among some of the major banks that offer mortgage loans, Chase (JPM, Fortune 500) Mortgage said it will not evict anyone between Dec. 22 and Jan. 2. Wells Fargo (WFC, Fortune 500) will also suspend evictions during that period, but will not shut down its eviction machinery entirely.
The bank said it will observe the moratorium on foreclosed properties in its own portfolio but for loans it services for other lenders "foreclosure-related actions may still occur."
Bank of America (BAC, Fortune 500) said that it would "avoid foreclosure sales or displacement of homeowners or tenants around the Thanksgiving and Christmas holidays."
However, that policy only applies to loans the bank itself owns. Like Wells Fargo, it will also honor the wishes of the owners of the loans it services, which could mean moving forward with certain foreclosures.
A holiday halt on foreclosures by the major mortgage lenders could affect tens of thousands of homeowners. An average of 89,000 foreclosure auctions a month have been scheduled this year, according to RealtyTrac. Once a home has gone through that process, eviction is the next step.
Giving foreclosure families a second chance
There could be a small handful of borrowers who might benefit permanently from the suspension, according to Daren Blomquist, a spokesman for RealtyTrac.
Sometimes, albeit very rarely, a Christmas miracle will occur where a borrower finds the cash to get current on their mortgage again and keep their home.
For the overwhelming majority of borrowers in default, however, "[i]t's a temporary reprieve, a symbolic gesture to help people out during the holidays," said Blomquist.
Then, come the New Year, everyone gets back to business, including mortgage lenders.
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If you knew what I've been through this entire year, 12 months of hell with heartless banks. I suspect it is due to all the vacations being taken this time of year.
And the fact banks don't want to pay to heat the buildings sitting vacant.
Real estate works...
My guess is that the judges are on vacation too. If not, it may allow the courts to get caught up a little...
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Isn't that what Dean's been trying to teach us? Look for the positives in what's going on?
Yes, once the holiday is over the banks are going to gear up into the "Bad Guy" mode again. The good news for some of those facing the problem is that they will have a couple of extra weeks to try and figure something out without the pressure breathing down their necks. Isn't that the positive? Let's say that first.
Now, do I believe the banks are doing this out of the goodness of their hearts? Absolutely NOT!!!!! There has to be an underlying reason. Probably PR for their companies for when they start standing in front of the judges again. That might save some face but, unfortunately, not many homes. To me, it's just one more instance of the commercialization of the holiday.
On a positive note, I'm not one of those in that position. I am liable to no banks
That's what I have to say on the subject. Thanks for listening.
Andy Sager
DG's AndyS
Andy Sager
DG's AndyS
CFIC & IE member
2013, 2014, 2015 & 2016 EDGE Alumni
banks having a heart?! when they come back from their holidays, business will continue as usual... homeowners will be evicted, properties foreclosed... they are just numbers to the banks, nothing more...
Valerie
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Shameless PR.
It's just that time of the year when they take a break. Bankers DO NOT have a heart and if they do have a heart they won't be working there to long. Happy Holidays Bankers
I have many things to be positive about, but BANKS are not one of them. This is just a way for banks to turn the fact that people are taking vacations, let's make out like we're doing it as a favor. The banks aren't giving people a couple of extra weeks', they don't have the staffing to do what they would like to be doing, so the story is turned into a 'banks with hearts' story. If banks would have a heart, they'd stop the foreclosures for everyone and modify everyone's loans so they're affordable and give forbearance until people get back on their feet again. That's just not going to happen because there's much more money to be made in foreclosures, selling NPN for much less than the value and cashing in.
Isn't that what Dean's been trying to teach us? Look for the positives in what's going on?
Yes, once the holiday is over the banks are going to gear up into the "Bad Guy" mode again. The good news for some of those facing the problem is that they will have a couple of extra weeks to try and figure something out without the pressure breathing down their necks. Isn't that the positive? Let's say that first.
Now, do I believe the banks are doing this out of the goodness of their hearts? Absolutely NOT!!!!! There has to be an underlying reason. Probably PR for their companies for when they start standing in front of the judges again. That might save some face but, unfortunately, not many homes. To me, it's just one more instance of the commercialization of the holiday.
On a positive note, I'm not one of those in that position. I am liable to no banks
That's what I have to say on the subject. Thanks for listening.
Andy Sager
DG's AndyS
Isn't that what Dean's been trying to teach us? Look for the positives in what's going on?
Yes, once the holiday is over the banks are going to gear up into the "Bad Guy" mode again. The good news for some of those facing the problem is that they will have a couple of extra weeks to try and figure something out without the pressure breathing down their necks. Isn't that the positive? Let's say that first.
Now, do I believe the banks are doing this out of the goodness of their hearts? Absolutely NOT!!!!! There has to be an underlying reason. Probably PR for their companies for when they start standing in front of the judges again. That might save some face but, unfortunately, not many homes. To me, it's just one more instance of the commercialization of the holiday.
On a positive note, I'm not one of those in that position. I am liable to no banks
That's what I have to say on the subject. Thanks for listening.
Andy Sager
DG's AndyS
I think you may have missed my point
As I stated, I don't think that Banks are doing this out of the goodness of their hearts. I truly believe there is another reason for this, whatever it is. But you shouldn't lump all the banks together. What about all the ones that HAVE done refis or sold houses cheap to investors to just get them off their books? Haven't they showed SOME heart?
Listen, I'm just trying to follow our mentor's advice to look and think positive.
I'm positive that some of the people being foreclosed on starting in Jan. 2012 are being screwed. I'm positive that some of the banks don't care. I'm also positive that if we investors stopped buying REOs, the banks would stop foreclosing because they would have no place to dump these "liabilities" anymore ( unless the government comes in again and bails them out). Oh, and I'm positive that the next president that bails out a bank will be terminated from office toot sweet!
Just trying to lighten up the conversation
Andy Sager
DG's AndyS
Andy Sager
DG's AndyS
CFIC & IE member
2013, 2014, 2015 & 2016 EDGE Alumni