Feb
Foreclosure Moratoriums
Government-controlled mortgage finance companies Fannie Mae and Freddie Mac said Friday they have immediately suspended all foreclosure sales involving occupied single-family and 2-4 unit properties through March 6, to give troubled borrowers more time to work with loan servicers to avoid losing their homes.
From the AP
Wells Fargo, Bank of America Corp., Citigroup Inc. and J.P. Morgan Chase have agreed to halt home foreclosures while the federal government works out a plan to stabilize the nation’s banking industry.
“We will not add to the foreclosure process any new owner-occupied residential loans that are owned and serviced by J.P. Morgan Chase,” said J.P. Morgan Chase CEO Jamie Dimon in a letter Thursday to Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee.
That moratorium would remain in effect through March 6.
From the St. Louis Business Journal
Your tax dollars at work.
At least it’s something. And at least some people aren’t going to be losing their homes to foreclosure this month.
February 13th, 2009 at 11:28 pmJill,
I’ll agree it’s something and I’ll agree that some people won’t lose their homes to foreclosure THIS month. What about next month?
Kicking the can down the road doesn’t solve the problem, it just delays the inevitable time where the problem has to be faced. There are an awful lot of “homeowners” living in properties they can’t afford and an awful lot of lenders carrying effectively worthless loans.
But, if the U.S. government floats the insolvent lenders and doesn’t allow “homeowners” who can’t afford their payments to be foreclosed, then I guess we really don’t have a problem, do we?
This situation is really a lot more serious than many people want to believe, and there isn’t any really painless way out of it. It really is just beginning, there will be more to come.
February 14th, 2009 at 12:51 amGood point Jim. This is just a band aid. Where is the talk about respa violations and preditory lending. If you don’t fix toxic mortgages to begin with, then the problem will only get worse.
February 19th, 2009 at 12:29 amI will agree that it is sad to see people get thrown out of their homes. I especially feel sorry for the children in these homes. I am a partner in a property preservation company. We clean out many homes where toys and clothes are left behind. Many of which are very personal items.
February 19th, 2009 at 4:54 pmI do feel sorry for the children, however, I do not feel sorry for the parents. These “adults” have to have these big homes they cannot afford, they take out home equity loans just to go on vacation or buy that shiny new Cadillac Escalade or they might actually do something useful like fix up their homes (for the record, I do understand that this in not true in all cases).
I also understand that many people have lost their jobs. Those are the people who should be helped, not the ones who wanted more then they could handle!!!
You should not be treated for living beyond your means. You should be punished.
I feel so bad for the World. We are all in this together. It does makes me very upset that banks should know better selling a mortgage that they knew the homeowners could not afford. It is Greed. How much money can we make off of these people. Alot, of circumstances happen to families which causes them not to get a great rate., But, they are willing to pay the extra to get a home. They struggle along but know it is killing them and then with an increase % or loss of job or health it is overwhelming. But, since the govt has bailed out the banks to help homeowners then the right thing to do is for the banks to do the very best they can for the homeowners. IT IS NOT THERE MONEY!!!!!!! It is the American Tax payers. If it takes longer than March 6 to get things together before they start foreclosure process what would it hurt for the homeowners to stay put where they are? Then banks want the homes so they can either resale to investors to make more money or they can rent it back to you. It is a win win for the banks nomatter what they say. They are the ones in control. They want the fees on top of fees and there is no guide lines on the fees they can charge. There should be a limit period on what they add on to the fees and whatever else they can dream up for homeowners to pay. Banks do the right thing you’ll still make money keep you jobs. And in 20 years you can look back and really feel good about trying to keep americans in there homes and when we all get to heaven you can smile and know that you did the very best you could for the American people.
March 2nd, 2009 at 10:15 pm