Citigroup, JPMorgan Announce Halt On Foreclosures

With many hoping that changes in the bankruptcy law that would allow judges to modify mortgages are imminent and the Obama administration developing plans to help stabilize the housing market, officials with JPMorgan and Citigroup have announced a halt to foreclosures on owner-occupied homes.

Many homeowners have sought protection from foreclosure through Chapter 13 bankruptcy in Atlanta, and been able to keep their homes.

The halt comes after congressional leaders have called for the industry to enact moratoriums on foreclosures until a program is in place to modify home loans for borrowers in danger of losing their homes. Reports have indicated that mortgages modified early in 2008 were again in arrears by the time the economic crisis began in September.

The Obama administration is working on a plan to use $50 billion on foreclosure preventions programs similar to the one used by IndyMac Bank in California after it was seized by the Federal Deposit Insurance Corporation (FDIC).