It's a Christmas miracle! Fannie Mae and Freddie Mac have heroically suspended their campaigns (of foreclosing on everyone's houses) for the holidays. From November 26 (the day before Thanksgiving) until January 9 (the day after the BCS National Championship Game) the former mortgage titans will take a time out from foreclosures and evictions.
What does this mean long term? Not much! All they're doing is putting off the inevitable, and by the time we actually have a new president, everyone will go back to being homeless again.
The companies plan to reduce interest rates for up to five years and lengthen repayment terms to as much as 40 years to trim monthly payments to roughly 38 percent of a homeowner’s monthly pretax salary. In some cases, borrowers may qualify to temporarily reduce the principal amount of the loan, which would be due without interest if the house is sold or refinanced.
“The Hope Now program is not going to be enough. It’s an incremental step,” said housing advocate John Taylor, president and chief executive officer of the National Community Reinvestment Coalition in Washington. “Obviously, we’re pleased that they’re doing this, but absent a substantive foreclosure program, I wonder if this is this just another problem they’re leaving for the Obama administration.”
But still, Christmas. It's saved now.
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