Industry News

Freddie Mac extends hurricane foreclosure moratorium

Date extended until May 31 in 21 Gulf Coast counties

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Freddie Mac said last week it will extend its foreclosure suspension until May 31, 2006, in 21 counties and parishes in Alabama, Louisiana, Mississippi and Texas that suffered the most severe damage due to hurricanes Katrina and Rita. At the same time, Freddie Mac said it would lift the moratorium on foreclosures in areas that experienced the least damage. The announcement was made in a February 10 Guide Bulletin sent to Freddie Mac's seller/servicers. "We are replacing our one-size-fits all approach with a zone approach," said Janet Eakes, senior vice president of Freddie Mac's operations division. According to the February 10 Guide Bulletin, the zone approach divides the 120 Gulf Coast counties covered by last year's foreclosure moratorium into three separate zones and applies appropriate policies to each. Specifically, Freddie Mac is extending its foreclosure moratorium through May 31 in Zone 3, which includes the 21 counties and parishes in federally designated disaster areas w...