February 13, 2009

Several major banks are expanding their efforts to halt home foreclosures

Filed under: Uncategorized — americanforeclosures @ 11:25 pm

Several major banks are expanding their efforts to halt home foreclosures while the Obama administration develops its plan to help struggling homeowners. Barack Obama plans on spending 50 billion dollars to help the foreclosure crisis. The white house press secretary Robert Gibbs said that the plan won’t stop foreclosures, but will help the situation.
Treasury Secretary Timothy Geithner announced a revised effort to stabilize the financial system on Monday. It contained outlines of a foreclosure-relief effort, but few details.
Lenders efforts to aid borrowers haven’t kept up with the foreclosure crisis in the United States. JPMorgan Chase & Co, Morgan Stanley, and Bank of America Corp all said that they will stop foreclosures through March 6th of 2009. Citigroup said that it’s stoppage of foreclosures will extend until the new Obama administration has completed the details of the loan modification program or March 12, whichever comes earlier. New York-based Citi’s action expands on a similar effort that it started in November of 2008. These rules will apply to owner occupied homes, not foreclosures owned by investors.
Testifying before House lawmakers this week, Geithner said the government would provide incentives to “try to induce economically sensible restructuring of mortgages,” but offered no specifics. A Treasury spokeswoman declined further comment Friday.

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