So far, several banks including Citi and Bank United have posted statements of postponing foreclosures as a result of the Federal Government's request:
A key member of Congress and a federal regulator encouraged financial institutions to suspend home foreclosures, as Washington's debate continued Wednesday about how to save an economy weakened by a moribund housing market.
"I would ask all of you now to please make sure that we have a moratorium in effect," said House Financial Services Committee Chairman Barney Frank, D-Mass., at a hearing where the CEOs of eight major banks testified about how they were using money from a $700 billion bank bailout fund.
At the hearing, Frank pressed bankers to voluntarily set up a moratorium on foreclosures until the Treasury department has put in place a plan to alter mortgages that will help troubled homeowners avoid defaulting on their loans.
There is no question many more banks will follow. The question is, for how long. A more important question is how long will it take the federal government to come up with a plan to assist homeowners with distressed mortgages and what will it involve. The government has earmarked $50 Billion of the $800 Billion to go to helping homeowners in foreclosure.
What impact do you think this moratorium and the Federal Stimulus Package will have on the future of short sales?
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