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When I hear the word, freeze, in regards to the mortgage and housing crisis, I immediately think of Arnold Schwarzenegger in Batman and Robin as Mr. Freeze with his super duper freeze gun.
Freezing everything in sight!
Yes, sometimes I fantasize in my own little loan modification and foreclosure freeze world. Hell, you have to fantasize a little. Especailly when you’re living in what is now known as the “American Nightmare.”
But in reality, that is exactly what struggling homeowners need to fight these villains known as mortgage servicers.
The big foreclosure freeze may be on the way…………………………..
Associated Press:
WASHINGTON (AP) — Senate Democrats are urging Fannie Mae and Freddie Mac to immediately freeze foreclosures on mortgages they hold.
The troubled home loan giants, seized by the government Sunday, should instead work to help struggling borrowers stay in their homes, four senators say in a letter to the firms’ new chief executives and the regulator now controlling them. They’re calling for a 90-day freeze on foreclosures.
WASHINGTON – Senate Banking Committee members urged Fannie Mae and Freddie Mac, the mortgage companies placed under federal control this week, to freeze foreclosures on loans in their portfolios for at least 90 days.
“This action would provide immediate relief to many homeowners” and let the companies “turn these nonperforming loans into performing assets to minimize losses,” Senators Charles Schumer, Robert Menendez, and other panel Democrats said yesterday in a letter to the companies and the Federal Housing Finance Agency, which is overseeing them under the government conservatorship. The companies also should ease their policies on modifying mortgages, the senators wrote.
Fannie and Freddie can foreclose on loans they either own or guarantee, which is nearly half of the $12 trillion US residential mortgage market. While they can direct servicers to stop foreclosure proceedings, other stakeholders, including private mortgage insurers, have some say in the process.
“Schumer really has to start thinking about what’s in the best interest of the majority of taxpayers and I’m not sure that freezing foreclosures is in the best interest of the majority of taxpayers,” said Joshua Rosner, an analyst with independent research firm Graham Fisher & Co. in New York. “It would just prolong the agony.”
