FORECLOSURE MORATORIUMS END

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Big banks have finally realized that it is not profitable to have homeowners living on property they are delinquent on. Their reason for the moratorium on foreclosure; waiting on the current administration to unveil a industry wide housing rescue plan. What happened? The rescue plan is a failure. The Wall Street Journal reported today that JP Morgan Chase, Fannie, Freddie, and Wells Fargo have lifted their internal moratoriums on foreclosures and have begun to take homes away from delinquent homeowners, who might have thought they would be there indefinitely, living for free.
The consequences of this action are downward pressure on home prices and more homeless americans. This plan was destined to fail before it was written in February. The question that needs to be answered is simply, who devised this plan? Sure these loans were over leveraged but halting foreclosures and repricing loans can never work because it is not market driven. Now after months of moratoriums, giving homeowners false hope, these banks are doing what they should have done months ago, take these homes and re-market them. The quicker we hit bottom, the faster we recover. Lets face it, if you couldnt afford the home you live in three months ago, you surely cant afford it now unless your financial situation changed significantly.
We have seen recent signs of a bottom and a glimmer of hope with record profits from Goldman so this decision by banks to end the moratorium will be welcomed by the market. However,this decision as far as i know has yet to be ratified by CEO and bank Czar Obama.

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