WSJ: Moratorium Ends, Foreclosures Return

Posted by Orb Staff on April 15, 2009 No Comments
Categories : Mortgage Servicing

eks after the administration outlined its Making Home Affordable plan, many servicers have resumed foreclosure processes that were temporarily halted by President Obama's request for a voluntary foreclosure moratorium, [u][link=http://online.wsj.com/article/SB123975395670518941.html?mod=googlenews_wsj]The Wall Street Journal[/link][/u] reports. Some of the servicers, such as J.P. Morgan Chase and Citigroup, already had internal moratoria in place prior to the one initiated in anticipation of the Making Home Affordable program. Chase says foreclosure proceedings were delayed for more than 80,000 borrowers (i.e., more than $22 billion of mortgages) since Oct. 31. Fannie Mae and Freddie Mac note an increase in foreclosure sales since their moratoria ended at the end of March. GMAC and American Home Mortgage Servicing are in the process of determining borrowers' eligibility for the administration's program, and a GMAC spokesperson told the WSJ that about 10% of GMAC borrowers in the foreclosure process appear to be eligible. The article also quotes Michael Thompson, head of Iowa Mediation Service, as saying, "We are getting so many of these cases where people don't fit the new [Obama] program." SOURCE: The Wall Street

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