Foreclosure Halt

For sure, a step in the right direct.  This past weekend, several banks announced that they were termporarily halting foreclosures. The banks include Florida-based banks BankAtlantic and BankUnited.  This is done in anticipation of some type of federal intervention in the mortgage crisis.

Of course, the devil is in the details.  The moratorium only applies to primary residences, which seems fair.  However, for those homeowners that are already behind, there is nothing that says the lenders are going to stop accruing interest during this moratorium.  The whole point is that if the moratorium is lifted and the banks are not happy with the federal plan, they can file against homeowners and seek to claim debts accrued during this moratorium.

It’s also worth noting that none of the big servicers, like MERS, is joining in.

I realize, I’m being nitpicky.  This is a good thing, but we’re a long way from this problem being resolved.

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One Response to Foreclosure Halt

  1. […] filings up in Florida Remember hearing something about the big banks giving homeowners a three month break while Obama’s foreclosure relief […]

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