Major Lenders Halt Foreclosures, Await Government Plan

Several major lending institutions have followed Fannie Mae and Freddie Mac in instituting or extending current foreclosure moratoriums. The announcements and press releases are pouring in - Citigroup, JPMorgan Chase, Wells Fargo, Bank of America and Morgan Stanley have all agreed to halt foreclosure proceedings while the administration works out the details of its plan. In addition, Fannie Mae and Freddie Mac have agreed to extend their halt on foreclosure sales through March 6th.

MortgageOrb.com also reports that "regional banks have also jumped in, as BankUnited and BankAtlantic, both based in Florida, say they will not foreclose until the Financial Stability Plan’s loan modification program is finalized". President Obama is expected to talk about the program as early as Wednesday.

Although I am hesitant to celebrate, I realize this is a major relief to homeowners in distress, and we will all be waiting with baited breath while a plan is finalized. Remember to stay in your homes, however... I am sure that whatever program is announced will apply primarily to owner-occupied properties.