Mortgage giants extend suspensions of foreclosures

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Submitted by pencilneck on January 8, 2009 - 10:27am

Mortgage giants extend suspensions of foreclosures

Freddie, Fannie extend suspensions of foreclosure sales, evictions through Jan. 31

Thursday January 8, 2009, 11:46 am EST

http://finance.yahoo.com/news/Mortgage-g...

Submitted by jpinpb on January 8, 2009 - 10:43am.

How long are they going to drag this out? How many extensions? Can people just default on their loan and live in it for free for the next 5 years?

Submitted by cr on January 8, 2009 - 11:06am.

This may help people affected by job loss, assuming they can get a new job at equal pay digging a ditch for Obama.

For the droves of speculators who thought they struck gold when they bought a house in the last 5 years however, it will only delay the inevitable and force banks to take a larger loss when they have to write down the principle.

I'm starting to wonder if Washington will ever figure out price declines and foreclosures ARE the solution, not stopping them.

Submitted by arnie on January 8, 2009 - 11:12am.

I wonder if the banks are simply saturated with foreclosures and can't process any more even if they wanted to. Does anyone have any first hand knowledge of whatever department handles foreclosures for banks?

Submitted by AK on January 8, 2009 - 12:44pm.

I'm seeing REOs coming on the market right now that were foreclosed on back in August or September.

I'd guess there's still plenty of shadow inventory to work through even with this moratorium.