Mortgage Modification - Loan Modification - Big Bank Moratorium

Three major banks announced a moratorium on homeowner forclosures joining the ranks of Freddi Mac and Fannie May.

Citigroup Inc, JPMorgan Chase & Co, and Morgan Stanley placed a moratorium on foreclosing on home loans to give the Obama government time to launch a $50 billion mortgage relief program.

Not surprising, the moratorium announcements came just a few days after major bank CEO’s committed to pausing mortgage foreclosures while at a Congressional hearing.

Foreclosures are expected to impact 4 million to 6 million or more Americans in the coming years. The National Association of Realtors said that sales of foreclosed homes helped drag the median price of existing homes to its lowest level since 2003.

Citigroup said its moratorium, which started on February 12, will last until either President Barack Obama has finalized the details of a program for modifying mortgages, or until March 12, whichever comes first. It applies to mortgages to borrowers living in their homes.

Morgan Stanley’s moratorium started February 12thand will last until March 6. It applies to the bank’s mortgage servicer Saxon unit, which collects payments on loans.

JPMorgan Chase & Co said its moratorium will last through March 6, which it believes is enough time for the Treasury to announce a new mortgage modification plan.

U.S. Treasury Secretary Timothy Geithner recently announced a plan to stabilize the financial system. One element of the plan is $50 billion of assistance to “prevent avoidable foreclosures” of middle-class homes occupied by their owners. Get loan modification knowledge and a Guide to enable you to do your own here:  Complete Loan Modification Guide