WASHINGTON (AP) - Mortgage finance companies Fannie Mae and Freddie Mac are suspending foreclosures during the holiday season.

The two companies say they will halt foreclosure sales between Nov. 26th and Jan. 9th, while they evaluate whether borrowers qualify for a new loan modification program.

Fannie and Freddie's loan modification plan aims to help abate the foreclosure crisis by aiding homeowners who have fallen at least three months behind on their payments, but only if their loans are held by the two companies.

Under the program, the new primary mortgage payments - including taxes and insurance -shouldn't total more than 38 percent of homeowners' pretax monthly income.

©2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

 

Good move!