subject: In the NEWS. Fannie and Freddie to resume Foreclosures [print this page] In the NEWSIn the NEWS. Fannie and Freddie to resume Foreclosures
After the "robo signing" foreclosure issue surfaced a few months ago to include large banks like Bank of America, and JP Morgan and Chase, we now here that Fannie Mae and Freddie Mac have begun telling realtors across the country to resume the sales of foreclosed properties.
Fannie Mae one of the government agencies who purchases mortgages had lifted the moratorium it had placed on foreclosed property, following a review of the affected homes. Fannie Mae consulted with the Federal Housing Finance Agency and other government regulators; it was unclear how quickly sales may resume due to loan servicers are still reviewing their paperwork.
Between the two government agencies Fannie and Freddie owe nearly 240,000 properties as of September of this year. The government agency sees selling these homes could perhaps lead to higher carrying costs for them over time. Delays due to a long process and an overwhelming application process could prompt buyers to lower prices or just simply walk away.
A memo sent from both Fannie and Freddie advised realtors to resume scheduling and holding of closings. If any title issues arise with respect to a potential defect of an affidavit used in the underlying foreclosure it will be dealt with. The mortgage giants were taken over by the government almost two years ago and have cost tax payers a whopping $134 billion so far.
Fannie also stated to mortgage servicers that they would face fines if foreclosures became unreasonably prolonged to avoid costly delays. These include properties with loans that have been serviced by units of Ally Financial (GMAC), Bank of America, JP Morgan and Chase, PNC Financial Services, One West (Indy Mac), and Sovereign Bank.
