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US banks show mercy to mortgage defaulters

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US banks show mercy to mortgage defaulters


Some of the big names in US banking including Morgan Chase and Citigroup have decided to halt home foreclosures for the time being.

The independent decision was welcome news for the increasing number of Americans struggling to pay their mortgages after being made unemployed. The moratorium on house repossessions will also give the federal government time to finalise its plan to stabilise the housing market. Carolyn Maloney, Democrat, U.S. House of Representatives applauded the move. “I am calling upon every mortgage issuer to follow suit; they will not foreclose until the president’s housing plan to help people stay in their home is before the American people.” US foreclosures reached over 270,000 in January – the tenth straight month that more than a quarter-million applications for repossessions were made. President Barack Obama is to outline a plan to stem the tide of homes being lost, next week He’ll make the announcement in Arizona, a US state with the third-highest rate of foreclosures after Nevada and California. There is also to be a review of re-payment tariffs to make them more affordable to home owners.

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