More "Hope for Homeowners" facing foreclosure, or just more hot-air from Washington, DOA?  Well it appears that Fannie Mae and Fredie  Mac - the semi-defunct, quasi-government holders of trillions in mortgage debt have announce today, November 20, 2008 that they will suspend foreclosure proceedings into January 2009, obviously the very very least they could do. 

The suspension will effect as many as 16,000 families facing a Holiday heave-ho.

In order to support the streamlined modification program announced on November 11, 2008, Fannie Mae (NYSE: FNM) today issued a notice to its loan servicing organizations and retained foreclosure attorneys directing them to suspend foreclosure sales on occupied single-family properties as well as the completion of evictions from occupied single-family properties scheduled to occur from November 26, 2008 until January 9, 2009.

The temporary suspension of foreclosures is designed to allow affected borrowers facing foreclosure to retain their homes while Fannie Mae works with mortgage servicers to implement the streamlined modification program scheduled to launch December 15. Foreclosure attorneys and loan servicers will be instructed to use the additional time to reach out to borrowers who have defaulted on their loans and continue to pursue workout options. The initiative applies to loans owned or securitized by Fannie Mae.

The streamlined modification program is aimed at the highest risk borrower who has missed three payments or more, owns and occupies the primary residence, and has not filed for bankruptcy. The program creates a fast-track method for getting troubled borrowers into an affordable monthly payment through a mix of reducing the mortgage interest rate, extending the life of the loan or even deferring payments on part of the principal. Servicers have flexibility in the approach, but the objective is to create a more affordable payment for borrowers at risk of foreclosure.

This is on the heels of FDIC Chair Sheila Bair's announcement that yet another program to help stop this ridiculous and economically dangerous level of forecosures.

What about the thousands of families getting foreclosed upon between today and the day before Thanksgiving - they still need to make "other arrangements" for things like sleeping, eating, staying warm and dry, getting the kids to school, not losing their job while living out of their car - just the usual Holiday hustle and bustle.

So far the Federal Government has only had to pass one Bailout Bill for the Banks to get help (and everyone else who does not deserve it) and just one Bailout Bill to help out the most back-ass-wardly managed industry in the nation - the forever tank-building, electric car killing, anti-gas efficiency Auto contingency - but somehow it is taking four or five programs to help a fraction of the taxpayers at risk of foreclosure.

The WSJ Blogs had some premature self-congradulations from Fannie - given the record of troubled loan workouts ove the past year (numbers vary greatly from source to source), Fannie officials may want to tone down the expectations:

Fannie Mae will be working with foreclosure attorneys and servicers to reach out to the more than 10,000 borrowers the company estimates would be affected during this period. Borrowers who have Fannie Mae loans that are scheduled for foreclosure between November 26, 2008 and January 9, 2009, will be contacted directly by the attorney handling the foreclosure. If the home is occupied, Fannie Mae has instructed servicers and attorneys to suspend the foreclosure.

Allison also said Fannie Mae's loan servicers are prepared to work with borrowers during this period, even if previous workout efforts have been unsuccessful. As part of the company's "Second Look" initiative, Fannie Mae personnel have been reviewing seriously delinquent loans to determine if the borrower has been contacted and all workout options have been exhausted.

Given that everyone and their uncle seems to have lost their jobs - or are under threat of losing their jobs - we need all of the folks we can to be stable and housed - not on the virge of economic ruin and eviction - if we even think we are going to have a chance of beating down this Depression Demon that is trying to come to life.

Where's the new Prez?  We need some serious leadership here and now, or this thing is going to be completely beyond reason by Q2-09.