Freddie Mac announced it has ordered all evictions involving foreclosed occupied single family and 2 to 4 unit properties that had Freddie Mac mortgages to be suspended from December 19, 2011 to January 2, 2012.
"If the property is occupied, our foreclosure attorneys will suspend the
eviction to provide families a greater measure of certainty during the
holidays," said Tracy Mooney, senior vice president of servicing and REO at Freddie Mac.
The suspension will apply only to eviction lockouts related to Freddie
Mac-owned REO properties and will not affect other pre- or post-foreclosure processes.
According to analysts at Nomura, approximately 7.2 million loans are seriously delinquent, in foreclosure, in REO, or modified and will re-default in the next 2 years. Of this amount, fewer than 600k loans are expected to be permanently cured, either naturally or through modification, and approximately 6.6 million loans are expected to be liquidated over the next few years.
"The current stock of shadow inventory is substantial and will likely take at least 3.5 years to liquidate given the current pace of home sales and expected liquidation rates," said the Nomura analysts in a report.