Mortgage giants declare Christmas truce over US foreclosures

It is delightful to hear that households in America may not be thrown out of their homes over Christmas.

Mortgage giants Freddie Mac and Fannie May are suspending all repossessions between now and January 2.

Mind you, they’ll both carry on doing all the paperwork, including filing legal notices. It’s just the actual evictions that will be the subject of a festive truce.

Bank of America is also calling a halt to foreclosure evictions. Other large mortgage lenders have postponed foreclosures in the past, but haven’t yet said whether they will do so again.

The reprieve is separate from the moratoria on those who have been facing eviction from their homes, except Superstorm Sandy got there first. That reprieve will continue throughout February (although we suppose it’s a fair possibility that the hurricane victims may no longer have any homes to repossess).

According to Terry Edwards, executive vice-president at Fannie Mae, lenders are getting in touch with their softer sides.

“The holidays are a chance to be with loved ones and we want to relieve some stress at this time of the year,” he said.

Honestly. All heart, aren’t they?