The holidays could spell relief for many troubled homeowners, as two mortgage giants have decided to keep people in their homes a little longer.
Mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE) have announced they will suspend foreclosures between November 26 and January 9. The government-sponsored entities will use the time to determine if borrowers are eligible for a loan modification plan.
The loan modification program restructures mortgage loans so that primary payments do not exceed 38% of borrowers’ monthly income before taxes.
The program applies to homeowners whose loans are held by Fannie and Freddie that are at least three months behind on their mortgage payments, in an effort to slow the increasingly dire mortgage crisis.
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