This is straight from CNN.com:

NEW YORK (CNNMoney.com) -- Mortgage giantsFannie Mae and Freddie Mac have directed their network of servicers to halt all foreclosure and eviction proceedings between Nov. 26 2008 and Jan. 9, 2009, meant to give a recently announced rescue plan time to work.

The Streamlined Modification Program, set to launch Dec. 15, enables delinquent borrowers to get a modified mortgage that lowers payments to no more than 38% of their gross incomes.

"By delaying these foreclosure sales, the nation's servicers will have the opportunity to work with more borrowers who could qualify for a modification under the new [program]," said Freddie Mac CEO David M. Moffett in a statement.

Hmmmm.....like so much of the news we have seen lately, this news leaves homeowners saying "that sounds great, but what does it REALLY mean for me?"

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This was interesting:

Freddie has told its servicers to immediately contact the 6,000 borrowers who already have auction sales or evictions scheduled for between the specified dates to tell them the sales are postponed. Fannie estimated that 10,000 of its borrowers will be affected. Borrowers facing eviction between Nov. 20 and Nov. 26 were not expected to get relief.

 

 

As an Industry Professional, it is truly a crazy time. We are being contracted to do things that would have made your head spin had we mentioned 3 years ago. One of those tasks is a "Home Retention Consulation."

This is a process in which licensed agents, like myself, are contracted with to go and contact homeowners who are #1 - in default on their loan, and #2 - not responding to lender contact about the situation.

I was contracted with this past week to work with a group called "Titanium Solutions" to do just this. The goal is to first make contact, and ultimately assist the borrower in making a loan modification, much like that described above, so they can keep the home. It's better for the bank, and if the borrower can get their finances in order, much better for them and their credit. Everyone wins, really.

"Home Loan Consultant'......who would have THUNK it?!?!?!? Stay tuned for more!

Full article HERE.