The Federal Housing Finance Agency, which seized Fannie Mae and Freddie Mac in September, announced the suspension of all foreclosure and eviction proceedings between Nov. 26 and Jan. 9, 2009, in an effort to give its newly created rescue plan a chance to work. It is yet unclear whether other financial institutions will follow suit with this new freeze. This is not the first foreclosure freeze this year and I am sure it will not be the last. This may not be big news in some areas but for potential buyers or sellers in the Bakersfield area this can have a big impact.

Roughy 70% of sales in most areas of town are bank owned REO properties. If you take all of those out of the picture for any period of time there will be a huge decrease in inventory. This is not the gradual decrease and correction that is bound to happen but instead an all of the sudden drop in the number of available homes. That can make things more difficult if you are currently looking for a home and are going to have a lot less options to choose from. If you are trying to sell right now this may be great news. Your slightly overpriced property now may be a lot more attractive when there are not 10 bank owned homes for sale down the street at 20k less!

The upside across the board though is that the financial institutions are going to take this time to try and help homeowners that have legitimate hardships. If you are having problems with your mortgage and are concerned about making future payments, I highly recommend contacting your mortgage company now and seeing what they can do to help!

Have a great week!