JPMorgan, Citigroup halting foreclosures

JPMorgan, Citigroup halting foreclosures

news.yahoo.com

WASHINGTON – JPMorgan Chase & Co. and Citigroup Inc. are expanding their efforts to halt home foreclosures while the Obama administration develops its plans to help the U.S. housing market.

JPMorgan Chief Executive Jamie Dimon said the New York company plans to halt new foreclosures for owner-occupied home loans through March 6. Dimon made the pledge in a letter to Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, who released it on Friday.

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I guess it would be better not to mention anything like foreclosures. The banks played a major role in the mortgage meltdown. The government extended its helping hand but didn't instruct the banks to take it easy on the foreclosure figures. The principles of justice have deteriorated in the USA to the point of being comparable with some advanced feudalistic systems of the past.

news.yahoo.com
(visit the link for the full news article)

It may also have to do with the expense of upkeep on an increasingly devalued commodity.

Foreclosure means giving up the original loan value. There is no way to offset the loss when supply dwarfs demand and qualified buyers. It is in their best interest to allow the original party to keep it and make minimal payments and stretch out the term of the loan.

It is more about making a buck than kindness in my opinion.

reply to post by Ahabstar


That surely isn't the case, as the large number of foreclosures vouches for. You can't extend the mortgage to some 60 years to make payments easier, because the very likely deceased no longer make money. The banks acted the old-fashioned way when dealing with the debtors, but assumed a "new-fashioned" attitude when asking the government for multibillion-dollar help. The government can put the whole nation into a huge indebtedness, because the nation is expected to live more than an individual, so the help was easy to come by, but the help was directed exclusively toward the financial system and was totally oblivious to the broader definition: it excluded the debtors not within the industry. The government failed to ask for something in return, namely to be able to closely monitor some of the banking practices that were close to fraudulent and contributed to the financial malaise.

It seems to me that Obama politely asked the bankers for a favor, instead of calling them on the red carpet: Okay, punks, you'll get the cash and this is what I'm buying from you . . .

There is no doubt in my mind that a better part of the economic stimulus package will come to waste due to the corruption and reckless pursuit of happiness, e.g. $$$$$$$.


[edit on 2/13/2009 by stander]

Aw how generous of JP Morgan and Citi to stop foreclosures.

Sure, foreclosed home look horrible on the books because it adds a liability along with the non-performing loan.

Sure, the banks want to get better publicity just in case another bailout is needed.

Sure the banks don't want to be slapped with property taxes and other fees from reacquiring homes.

We the people, will probably overlook these details and thank our generous banker overlords.

What a smokescreen......

it's most likely that the Foreclosure properties just aren't worth the effort & expense...

for example, the Michigan & Detroit areas have been really hard hit with lay-offs & pink-slips that are not gonna be 'temporary'

perhaps the foreclosures are of homes in devestated areas where thereis a very unlikely probability of turning the home over to another buyer...


so... are we to take that bait -> that the banks are calling a moritorium
because the banks have a soft spot about human misery ---NOT!!

[besides Feb 13 thru Mar 6th = 21 whole days (15 business days) of not acting as Vulture Capitalists] whoop-de-doo

of course it doesn't matter because bailout #3 will pay the banks to foreclose,
along with the outrageous salaries & bonuses of these 'talented & retainable' executives

[edit on 13-2-2009 by St Udio]

Originally posted by stander


I guess it would be better not to mention anything like foreclosures. The banks played a major role in the mortgage meltdown. The government extended its helping hand but didn't instruct the banks to take it easy on the foreclosure figures. The principles of justice have deteriorated in the USA to the point of being comparable with some advanced feudalistic systems of the past.

news.yahoo.com
(visit the link for the full news article)

You should read "The Tower and the Abyss" by Erich Kahler... great book about eventualities in human marketplaces