Three major banks suspending foreclosures for several weeks

[kpete]

Source: McClatchy

Three major banks suspending foreclosures for several weeks
By Stella Hopkins | Charlotte Observer

Bank of America and two other major banks said today they will suspend foreclosures for several weeks as the federal government works on a plan to help people save their homes.

Bank of America will delay foreclosure sales starting today on primary residences. That means investment property, second homes and such are not part of the package. The moratorium ends March 6, but the Charlotte bank will consider an extension if the federal loan-modification plan isn't ready, said spokeswoman Jumana Bauwens.

The bank last year bought Countrywide Financial, the largest mortgage lender and a key player in the subprime mortgage market that has been plagued with foreclosures following years of lax lending.

J.P. Morgan Chase and Citigroup also announced foreclosure moratoriums today.

Read more: http://www.mcclatchydc.com/251/story/62158.html

[napi21]

1. Well, surprise, surprise! At least 3 of them are keeping the promise

they made to Barney Frank in the hearing! Now what about the other 5 that were there?????

[PassingFair]

2. Help is on the way!

To all those who are cold and hungry.

HANG ON.

No sarcasm here, I just hope that
the ship has turned around in time.

I am SO sorry for those that didn't
survive the first wave, and are homeless.

[customerserviceguy]

3. So, the foreclosure rate will go down

but only artificially. The drop in the foreclosure rate in January was because of Freddie and Fannie doing their voluntary moratorium.

All this does is postpone the pain until later in the Obama Administration. If I were a Rethug, I'd cheer this news.

[eilen]

14. There will always be a percentage of foreclosures

for people who purchased too much house-- that would have never qualified for such a mortgage with sound underwriting. I think the government should put together a fixed rate FHA plan for people and those with the income to qualify for the cost of their mortgage will get one and those that can't, won't. The banks should waive the fees and penalties associated with the original loans (to be fair). It is not a reflection on the Democratic leadership but an avenue and perhaps an example of responsible lending. I think turning over the bankruptcy act so as to allow people to declare bankrutcy who cannot convert their mortgages to an FHA would be another fair thing to do and ease the pressure on our economy. Hell, if the banks can walk away without having to pay back those obscene sums of money from TARP, the American citizen should have the option to declare bankruptcy and start over.

[flvegan]

4. We need the subprime noteholders to suspend.

I'd like to see the proportion of loans held/foreclosed by these major lenders and the smaller subprime lenders.

Applause to these three, though.

[marketcrazy1]

5. is it right to bail out

homeowners who were irresponsible at the expense of others who were more prudent because that is what is going to happen........

[flvegan]

6. I don't think the majority of them were irresponsible.

[marketcrazy1]

7. I guess those who were irresponsible.

really lucked out!

[flvegan]

8. Lucked out?

The foreclosure suspension is for a short period of time. Also "lucking out" are the neighbors of those that will benefit from this suspension because the f/c won't screw with their property value, etc.

[morillon]

10. Exactly.

Foreclosure benefits nobody. The only people who got "lucky" in this whole mess are the assholes who got the fees for the loans. Or who pocketed the interest money while it was still coming in. Or who sold, resold, reresold, and rerere-X10-sold the deceptively overvalued assets while they still could. 99% of us are the victims of these fraudsters. We all pay for their excesses and their dishonesty.

[morillon]

9. Heh.

Yeah, like I'm SO envious of people who have lost their jobs and can't afford to keep a roof over their heads. :sarcasm:

I don't think one person in the bunch would call himself LUCKY. Good lord.

And some of them were actually tricked into sub-prime. Countrywide tricked my husband and me into a sub-prime years ago. We didn't know until closing that we'd been placed with Full Spectrum (their sub-prime division) instead of regular Countrywide, and we had high enough FICO scores and low enough debt-to-income ratios to easily qualify for prime. By then, we'd gone through so much b.s. to get to closing that we went through with it anyway, but we will never do business with them again because they're sneaky and weird.

[InkAddict]

13. I hear you loud and clear...

Sneaky and weird aren't the descriptors I would use! Cunning and malevolent come to mind. I suppose I'm glad that families will get a short reprieve but something tells me--the jobs outlook maybe--that it's just postponing the inevitable for so many living in the limbo.

[girl gone mad]

11. Bad news.

Banks want to stick us with their bad mortgages to the tune of $50 Billion.

We've already seen that mortgage restructures have a very low medium term success rate.

I think we would all be better off letting the foreclosures happen.

[marketcrazy1]

12. if it were only 50 billion

I might say go ahead, give it a try! but it is not. through the "magic" of leverage that fifty billion could support 500 billion!! but hey, who cares it`s free money!! LOL!! oh the poor sheeple........