On November 20, 2008 Fannie Mae and Freddie Mac announced a moratorium on foreclosures. The moratorium was scheduled to run through January 9, 2009. Approximately 16,000 homes were expected to be affected.

As a result of the moratorium, you can expect a surge of foreclosures during January, February and March of 2009 unless Fannie Mae and Freddie Mac take corrective action.

WHAT DOES THIS MEAN FOR YOU

If you are planning on selling your home in the first quarter of 2009 – especially if it is a short sale – expect a lot of competition from a wave of foreclosed homes that will be coming on the market.

It also means that there will be added pressure on home prices, and values are more likely to continue falling in the first half of 2009. If you are already upside down on your home, expect it to get worse before it gets better.