While the upcoming holidays are often billed as times of great happiness and celebration, the time is anything but for individuals in the Miami area experiencing difficulty with their finances. For those individuals, the pressure of buying presents for loved ones with money they do not have is most definitely not joyous. As readers can likely imagine, it is even worse when someone is on the verge of losing their home.
In a gesture of holiday cheer, mortgage holders Fannie Mae and Freddie Mac recently announced moratoriums on evictions of certain types of homes. Included are single-family homes and properties with between two and four units. Fannie Mae’s hiatus will run between Dec. 19, 2012 and Jan. 2, 2013. Freddie Mac’s runs to the same date but starts two days earlier, on Dec. 17.
After January 2, 2013, evictions are scheduled to resume.
Fannie’s Mae’s executive vice president of credit portfolio management indicated that the reason behind the announcement is to try to relieve some of the stress individuals finding themselves in this situation may be feeling. In addition, Fannie Mae wants homeowners facing foreclosure to know that they may have options. A Miami area lawyer may be able to help outline just what those options are.
Some homeowners facing foreclosure find that the best way to address the matter is to deal with the larger issue of financial hardship by filing for bankruptcy. In addition to either liquidating assets or constructing a repayment plan, filing for Chapter 7 or Chapter 13 bankruptcy also results in an automatic stay being issued halting actions such as foreclosures. If nothing else, this provides a homeowner more time to try to determine how best to deal with one’s house.
Source: American Banker, “Fannie, Freddie to Halt Foreclosures for Holidays,” Brian Browdie, Dec. 3, 2012
Our firm handles similar situations to the one discussed in this post. If you would like to learn more about our practice, please visit our Miami foreclosure and bankruptcy page.