The Real Deal Miami

Mortgage moratorium may cause delays for homeowners facing foreclosure

October 18, 2010 03:00PM

The decision by lenders such as Bank of America and JPMorgan Chase to halt most or all foreclosure sales will affect homeowners across the country, who will likely be kept in their homes for weeks or months, the Wall Street Journal reported. So far, there are few signs that lenders and servicers will undo substantial numbers of the foreclosure proceedings being reviewed across the U.S. No one has been “evicted out of a home who shouldn’t have been,” James Dimon, JPMorgan’s chairman and CEO, said last week. Halts in foreclosure sales are likely to cause little financial impact on banks in the long run, according to Wall Street analysts. Americans for Financial Reform, a Washington-based group of consumer, investor and small business organizations, called for a temporary moratorium on foreclosures on Friday, saying there should be a new process ensuring that lenders are following the rules. [WSJ]