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8 lenders agreeing to stop foreclosures...temporarily.

Real Estate Agent with RE/MAX Coastal Properties

February 16, 2009 06:33 PM

Moratorium in place until March or the Obama administration announces a plan

Citigroup Inc, JPMorgan Chase & Co., Bank of America Corp, Morgan Stanley and Wells Fargo agreed to suspend foreclosures while the Obama administration works on a housing plan to modify mortgages for troubled borrowers.

Citigroup will halt foreclosures through March 12, Wells Fargo said its moratorium is in place until a plan is announced. The other lenders said foreclosures will be stopped on owner-occupied homes until March 6. So basically they are stopping for 3 weeks?

JPMorgan, Citigroup, Bank of America, Morgan Stanley, Goldman Sachs Group Inc., Wells Fargo, State Street Corp and Bank of New York, Mellon Corp. got $125 billion from the Troubled Asset Relief Program in October, and Citigroup and Bank of America each got an additional $20 billion.

Citi is taking reportedly taking steps to help American homeowners keep their homes. The company said it has worked with about 440,000 borrowers to stop foreclosures since the start of the housing crisis in 2007. Bank of America said it would consider extending its moratorium beyond March 6 if Geithner's plan is still being developed.

The Obama administration outlined a plan this week that would provide housing relief, help remove illiquid assets clogging banks' balance sheets and spur lending. Geithner pledged to buy and modify troubled homeowner mortgages, and Senate Banking Committee Chairman Christopher Dodd said the aid could be as much as $100 billion.