Fannie Mae to temporarily halt foreclosure sales and evictions

Breaking news!

The following is reprinted from a Fannie Mae email announcement.
Please note the Lender Letter is a link to a PDF.

Fannie Mae has issued Lender Letter 04-08 announcing that we are halting all foreclosure sales on occupied single-family properties that are scheduled to occur from November 26, 2008 through January 9, 2009. This temporary halt also applies to eviction lockouts of occupied single-family properties.

These actions allow affected borrowers to retain their homes while we work with our regulator and conservator, the Federal Housing Finance Agency, to implement the previously announced streamlined loan modification program by December 15, 2008.

To facilitate borrower communications, servicers must instruct foreclosure attorneys to send letters to borrowers whose foreclosure sales are halted urging them to contact their servicer, so that together, the servicer and borrower can continue working to resolve the delinquency.

For complete details, including other servicing and reporting requirements, please see Fannie Mae Lender Letter 04-08 (PDF) on our 2008 Lender Announcements and Letters page on eFannieMae.com and the news release on fanniemae.com.