Over the past week, both Bank of American and J.P. Morgan Chase announced that they are freezing foreclosures for the next 90 days.
At least in B of A’s case, the sudden urge for benevolence was attached to the Attorneys General of Arizona and a handful of other states stopping their legal proceedings against Countrywide, which Bank of America now owns.
The plan from both lenders to to help select homeowners with loan modifications that will put them in position to make their payments and hold on to their properties.
About the only downside I can see would come from those folks who simply decided to walk away from their obligations; these people don’t want the homes and probably won’t be interested in loan modification. Hopefully, that’s a rather small group.
From the Arizona Republic …
In early October, the number of pending foreclosures Valley-wide hit a new high of 29,000, according to Information Market, a real-estate research firm that, while conducting its daily analysis of property records, discovered that Countrywide foreclosures had been pulled.
Pending foreclosures are now down by at least 2,000 because of Bank of America’s action, and more foreclosures in the Valley are likely to be temporarily halted this month.
“Now, we are asking other big mortgage firms to take on the same obligations to work with struggling borrowers as (BofA),” [Arizona Attorney General Terry] Goddard said.
About 13,000 local homeowners will be aided by B of A’s move.
(h/t: Agent Genius News)[tags]Phoenix real estate, foreclosures[/tags]