As the spending stimulus package passed the House and Senate on Friday, lenders large and small took action to stem the tide of foreclosures (1 every 13 seconds) until more details were revealed about President Obama’s $50 billion plan (that’s the portion of the stimulus devoted to foreclosures, according to the AP).
Fannie Mae, Freddie Mac, JPMorgan Chase & Co., Morgan Stanley, Citigroup Inc. and Bank of America Corp said they were halting foreclosures for at least a month on Friday, followed by many smaller banks around the country.
This amounts to a triage until they can come up with a permanent solution,” said Anne L. Weintraub, a Sarasota attorney who specializes in real estate. “Banks are finally trying to come up with an alternative to foreclosure because it’s expensive and they don’t want to become property managers.
I hope the good folks making these decisions (politicians, big banks, etc) realize the implications on the business of lending that their actions will have. The incentive to lend money is fast disappearing . . . I better collect on the $10 bucks I lent to my buddy before that is also deemed unfair by the government!
Related posts:
- The Obama No Plan Lacks Details; Markets Take A Dive; No Firm Plan To Prevent Foreclosures Announced; Real Estate Caused Global Economic Panic Worsens Daily
- Geither to Announce Bailout Plan Monday – Will Credit Start Flowing Again Soon?
- We Buy Banks; Markets Rejoice; Where’s The Rescue Plan For Homeowners?
- Foreclosures Matter! How Foreclosures have affected homeowners, investors and the economy
- Builders Now Getting Screwed By Banks; Obama Must Deal With Plight Of Home Owners and Builders At Same Time
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{ 5 comments… read them below or add one }
Why do I bother paying my bills when people are getting rewarded for not paying theirs?
About the stimulus,I rather hold it with my faith,what Obama says about the stimulus.perhaps works and perhaps dont,however with his decision to try to get out of the crisis ,I certainly sure it will bring hope.,and I dont think we need more then it for now,just wait and lets see.
No one knows what the plan actually is Sam. Supposedly we’ll hear all the details on Wednesday but if it is like the other plans that we’ve seen out of DC, it is just going to be another out of control spending disaster.
I’m with Dave Francis on this one — why should I even bother to pay MY bills on time, if the people that don’t get a reward? It seems like another instance of putting a Band-aid on a bad wound instead of actually fixing what’s wrong.
Stimulus is a temporary solution to economic problem. Lets just hope and pray that Obama will fulfill his duties and responsibilities well. Nice post.