Fannie Mae and Freddie Mac announced today that they are suspending foreclosure sales of owner-occupied homes from November 26, 2008 to January 09, 2009. Forecloaure sales for second homes and investment properties will not be suspended.

They are doing this while they create new procedures for the streamlined loan modification plan that I discussed in my post dated November 11, 2008. 

The suspension will also give loan servicers more time to help borrowers avoid foreclosure.