Fannie Mae and Freddie Mac Halt Foreclosure Evictions for the Holidays

Foreclosed homeowners won't be evicted from their homes over the holidays. Also, foreclosure sales won’t go forward in hurricane-affected areas during this time.

By , Attorney

Fannie Mae and Freddie Mac recently announced that they will suspend all post-foreclosure evictions starting December 18, 2017, and will not resume lockouts until January 2, 2018.

Also, Fannie Mae and Freddie Mac have suspended foreclosure sales for hurricane victims until December 31, 2017.

Who or What Are Fannie Mae and Freddie Mac?

The Federal National Mortgage Association (FNMA) or "Fannie Mae" and the Federal Home Loan Mortgage Corporation (FHLMC) or "Freddie Mac" are government-sponsored enterprises that own or back (guarantee) many mortgages in the United States.

Here's a brief summary of how Fannie Mae and Freddie Mac fit into the mortgage market:

When a borrower takes out a mortgage from a lender to buy a home, in many cases, the lender will turn around and sell the loan to a new owner—called an investor—like Fannie Mae or Freddie Mac. After Fannie Mae or Freddie Mac buys the loan, they will either retain the loan in their portfolio or combine the loan with others into mortgage-backed securities and sell them to private investors. In some cases, Fannie Mae and Freddie Mac guarantee the loans that they sell to investors.

Eviction Moratorium

Fannie Mae is suspending evictions of foreclosed single-family and two- to four-unit properties from December 18, 2017 through January 2, 2018. Families may stay in their homes during this period, though legal and administrative proceedings for evictions may continue.

Freddie Mac is suspending eviction lockouts between the same dates—December 18, 2017 and January 2, 2018—with the moratorium applying to all foreclosed, occupied homes that Freddie Mac owns. Even though Freddie Mac is suspending evictions, other pre- or post-foreclosure activities may continue.

Foreclosure Sale Moratorium

Freddie Mac and Fannie Mae also stated that they suspended all foreclosure sales in eligible disaster areas impacted by Hurricanes Harvey, Irma, and Maria until December 31, 2017.

Fannie Mae and Freddie Mac later extended the suspension of foreclosure sales through May 31, 2018 for mortgaged properties in FEMA-declared disaster areas in Puerto Rico and the U.S. Virgin Islands due to Hurricanes Irma and Maria.

How to Find Out Fannie Mae or Freddie Mac Owns Your Mortgage

To find out if Fannie Mae or Freddie Mac owns your mortgage—and therefore the moratoriums apply to you—use Fannie Mae's Loan Lookup website and the Freddie Mac Loan Look-Up Tool.

Effective date: December 11, 2017