Mortgage giants Fannie Mac and Freddie Mac, which were seized by government regulators earlier this year, announced plans this week to suspend foreclosures during the holidays. So, from now through January 9, 2009, the agencies will neither foreclose on home loans nor modify home mortgages.

Approximately 16,000 households will be affected.

It’s not hard to see how this one evolved: Government bureaucrats faced with a daunting amount of work – modifying 16,000 mortgages – decided to:

(a) Keep working hard so that distressed homeowners would have relief in time for the holidays, or
(b) Take an extended vacation.

One more sign that we are slowly turning into….France.

Fannie & Freddie to Restructure Home Loans

Fannie and Freddie will restructure home loans for homeowners who are at least three months behind on their mortgages. Under the loan modification plan, payments on mortgages, including principal, interest, taxes and insurance, will be set at 38% of a borrower’s monthly pretax income.

The lesson here is:

• Stop paying your mortgage so you qualify for the program,
• Lower your income – drop that second job, stop working OT, etc. to lower your monthly payment, and
• Start telling your kids that the best jobs are in government.