One piece of good news for Las Vegas homeowners is an announcement by two government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac. Both have chosen to enact an eviction moratorium, as related in an article in the Chicago Tribune. Here are five worth knowing about their decision.
- The moratorium is not so much on foreclosures than on evictions. There is a difference. A moratorium on foreclosures, as it’s described, would halt currently pending foreclosure proceedings, and new ones would not begin. An eviction moratorium means the occupants of the residence will not be forced to leave until the moratorium is lifted. The residence will still be foreclosed upon, the occupants evicted, and the home resold in a foreclosure auction.
- Obviously the moratorium only applies to mortgages held by Fannie Mae and Freddie Mac. Those whose mortgagees are commercial banks might not be affected. However, there are some news reports[http://www.huffingtonpost.com/2011/12/02/christmas-fannie-mae_n_1125348.html] of big banks like JP Morgan Chase and Wells Fargo offering similar protections.
- Likewise, those who do not know if their mortgages are affected should check with their servicers. The GSEs will likely tell anyone affected that they are protected directly.
- The moratorium differs between the two GSEs. For Freddie Mac, it begins on Monday, December 17 and lasts until Wednesday, January 2. For Fannie Mae, the moratorium begins on Wednesday, December 19 and only applies to single-family dwellings and two- to four-unit properties.
- Neither the Chicago Tribune nor the GSEs say how many homeowners would otherwise be evicted absent the moratorium.
Although homeowners might find emotional relief from the eviction moratorium, it’s not a good time to procrastinate. Instead, affected families can use the time the eviction moratorium provides to move their most valuable possessions away from the property. Any unneeded furniture should be placed in a storage unit, but not irreplaceable items like family mementos. Because insurance can’t put a price on those items, they should not be placed anywhere that can’t be trusted completely. Instead, homeowners should leave these items with a trusted friend or family member until a new residence can be secured. The eviction moratorium is also an excellent opportunity to discuss your case with a Las Vegas bankruptcy lawyer.
For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Freedom Law Firm Las Vegas bankruptcy attorney for a free initial consultation. Call us at 1-702-903-1459 to set up your free consultation.