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Holiday moratorium on foreclosure

  • December 13, 2012 - 5:36 PM

U.S. Bank and Wells Fargo are among several national banks that will implement a holiday moratorium on foreclosure sales, according to American Banker.

For U.S. Bank, the moratorium will last from Dec. 17 through Jan. 2. Wells Fargo will begin its moratorium Dec. 19. Wells Fargo and U.S. Bank will suspend evictions and foreclosure sales on loans owned by the banks nationwide.

Fannie Mae and Freddie Mac took similar actions. Fannie said that from Dec. 19 through Jan. 2 it will halt evictions from single-family homes and two- to four-unit properties that have been foreclosed on, although foreclosure proceedings may continue. Freddie will honor a moratorium from Dec. 17 to Jan. 2.

"We're taking this step in support of families who have faced financial challenges and gone through a foreclosure," Terry Edwards, executive vice president of credit portfolio management for Fannie Mae, told American Banker. "The holidays are a chance to be with loved ones, and we want to relieve some stress at this time of year. We encourage homeowners having difficulty to reach out for help as soon as possible."

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