Freddie Mac Helps Out Bankers (And A Couple Of Home Owners)
Freddie Mac has ordered its servicers to suspend all foreclosure sales on Freddie Mac properties until December 31, including mortgages that were in default prior to Hurricane Ike. (Servicers, by the way, are the banks and mortgage companies that hold home loans.)
Now, wait a minute: before you get all warm and fuzzy about Freddie Mac’s big-hearted gesture, it wasn’t because the people at Freddie Mac saw all of the newscasts showing Houston and Galveston devastated by the storm and took pity on much-put-upon homeowners.
Nope, Big Mac decided to suspend foreclosure sales for the rest of the year because servicers were having a hard time getting into the devastated areas in order to make their assessments of the properties. In other word, the foreclosure man couldn’t get over to Bolivar to see the beach house he was throwing folks out of, in order to figure out a good resale price.
Brad German, spokesperson for Freddie Mac, told Hair Balls, “The purpose of the suspension was largely based on communications from our servicers who were having a hard time getting access to the hard-hit areas. This buys them more time.
“At the same time, this would offer people who are in the foreclosure process time to, perhaps, turn things around. Maybe they can pull resources together to do a workout. We do a lot of workouts, until the 59th minute of the 11th hour.”
Well, damn. This sounds like a good deal for the banks and mortgage companies that just happens to slightly help a few home owners.
And after the deadline, will folks just get kicked out anyway? (After they’ve spent the last three months cleaning up the mess Ike left?)
“After December 31, inspectors will be able to get to the property, inspect the property and then come up with a determination and take the appropriate steps.” Translation: Yep, they’ll get kicked out.
“The last time this happened was after Katrina and Rita, which created significant problems for servicers and there were such a large number of properties involved,” says German. “There were some suspensions then, too.” Yeah, and we all know how much help Freddie Mac was to the Katrina and Rita survivors. What’s another word for “zipola?”
— Olivia Flores Alvarez