According to an article in the Star-Telegram, a foreclosure moratorium implemented by Freddie Mac and Fannie may have decreased foreclosures in the Dallas- Fort Worth area by 8 percent. With over 2,000 foreclosures, Dallas County still has an extremely elevated level of foreclosures; but not as bad has it would be without the foreclosure moratorium.
As most already know, Freddie Mac and Fannie Mae are the largest mortgage lenders in the U.S. If this company allows all the struggling homeowners to go to foreclosure we would literally see the real estate market and the rest of the economy go into a free fall.
Massive foreclosures coming from Freddie Mac and Fannie Mae would be simply devastating. The foreclosure moratorium is only buying all of us time to fix the problems that are causing this fiasco. The problem is not so much the homeowners; but the toxic mortgage loans that need to modified in bankruptcy or via the lender immediately.
That’s why we need to change the bankruptcy laws so that can be possible for debtors struggling with the primary residence mortgages and filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy .