GSE's Halt Reposessions...
In recent press releases, mortgage giant GSEs Fannie Mae and Freddie Mac have vowed to halt foreclosure and eviction filings for the upcoming holidays. Terry Edward, Executive Vice President of Credit Portfolio Management with Fannie Mae made a statement this week saying "The holidays are a chance to be with loved ones and we want to relieve some stress at this time of the year." The filings will be suspended beginning December 17th, and will resume on January 2nd... (Happy New Year!)
Freddie Mac Spokesperson Brad German mentioned that this would not effect other pre or post foreclosure activities such as filing for default and scheduling auction sales.
Bank of America quickly followed suit and also postponing evictions and foreclosures during the holiday period as well. If any bank needs some positive PR, it's Bank of America. Looks like they recognize their public image and jumped at the opportunity to enter the spot light.
Other banks such as Wells Fargo, JP Morgan Chase, and Citibank have postponed such activities in previous years, but have yet to make a statement regarding the topic for 2012.
For investors, this means nothing. Business will resume as usual. There is still inventory and there will still be inventory. A minor lag may be felt in January from this action, but it will be short lived.
As for troubled home owners, this also means nothing. Unless people facing foreclosure have a very generous stocking stuffer coming their way, the foreclosure will continue as processed, just slightly later.