Fannie Mae, Freddie Mac halting foreclosures

Fannie Mae and Freddie Mac say they will halt foreclosures during the holiday season.

By: Associated Press | Alabama's13.com
Published: November 20, 2008

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WASHINGTON (AP) - Mortgage finance companies Fannie Mae and Freddie Mac are suspending foreclosures during the holiday season. The two companies say they will halt foreclosure sales between Nov. 26 and Jan. 9, while they evaluate whether borrowers qualify for a new loan modification program.

Fannie and Freddie's loan modification plan aims to help abate the foreclosure crisis by aiding homeowners who have fallen at least three months behind on their payments, but only if their loans are held by the two companies. Under the program, the new primary mortgage payments - including taxes and insurance -shouldn't total more than 38 percent of homeowners' pretax monthly income.

(Copyright 2008 by The Associated Press. All Rights Reserved.)