HelocBasics » Freddie Mac

No Fannie / Freddie HELOC Foreclosures During Holidays

Jamie — Thu, 27 Nov 2008 06:13:26 +0000

Fannie Mae and Freddie Mac won’t be perusing foreclosures during the holidays. Even those facing HELOC foreclosure are off the hook – at least for a few weeks.

MarketWatch reports:

“Fannie and Freddie will not foreclose on occupied homes from Nov. 26 to Jan. 9. Fannie said it will reach out to 10,000 affected borrowers and Freddie will reach out to 6,000 affected borrowers.”

For more information about the foreclosure process see: HELOC Foreclosures.

Homeowners Taking Out Less HELOC Cash This Year

Jamie — Fri, 25 Jul 2008 06:52:17 +0000

According to a new Freddie Mac report, homeowners took out less money from their home equity lines of credit this year than they did during the same period four years ago.

CNN Money reports:

“The amount of money Americans pulled out of their homes is at a four-year low as homeowners battle falling home values and stricter standards among lenders, Freddie Mac said Thursday.

Homeowners “cashed out” about $68 billion in home equity during the first half of the year, the lowest since the first six months of 2004, according to the McLean, Va.-based mortgage finance company.”

The report doesn’t mean that homeowners are happily cutting back on HELOC spending. On the contrary, these figures are likely due to HELOC freezes and desperate home equity applicants receiving rejections.

See Also:

HELOC Freeze Help

The Best HELOC Lenders

A Home Equity Line of Credit From Congress?

Jamie — Thu, 24 Jul 2008 07:28:15 +0000

Government sponsored enterprises Fannie Mae and Freddie Mac may no longer be in trouble, thanks to a generous resolution passed by the House. The new bill gives these organizations access to an unlimited amount of money, which can be used to purchase mortgages from struggling lenders.

Not everyone appreciates today’s decision. A Seeking Alpha blogger compares it to receiving a HELOC from the government:

“The bailout plan for mortgage-struck Freddie and Fannie includes something awfully similar to the sort of home equity line of credit [HELOC] nuttiness that got the mortgage market in trouble in the first place.”

Will tax payers appreciate this move to counter the lending crisis? Or will they resent national funding being used to bail out bad loans?

The Senate is expected to also approve bill, which should make its way to the president’s desk as early as this weekend.

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