30 Nov Lenders Calling Moratoriums On Foreclosure?
Following the lead of Freddie Mac and Fannie Mae, lenders across the country are jumping on the foreclosure moratorium bandwagon. This is accompanied by calls for moratoriums in the states of Connecticut, Florida and California. Protests by community groups have sprung up across the country demanding this relief.
In California, Governor Schwartzenegger and several legislative leaders are proposing a 90 to 120 day stop to all foreclosures in the state. In Connecticut, Governor M. Jodi Rell proposed a six-month halt to foreclosures in that state and the Judiciary Department is serously looking at the impact of such an action. Florida’s Governor Crist has been said to be consideringa moratorium in his state. Federal Government officials are considering the impact of such moratoriums on the real estate market, lender and consumers alike.
Meanwhile, other lenders are starting to see some benefit from halting foreclosures in certain areas. Citigroup has announced a stop to foreclosures to give homeowners an opportunity to negotiate a new payment plan. Large Banks such as Bank of America and Chase have followed suit. Smaller banks, like Connecticut’s Webster Bank, have also announced similar programs.
The movement to slow or completely stop foreclosures may be a step in the right direction. Even commentators on the economy believes this is an idea whose time has come.