Now four banks have agreed to a foreclosure moratorium. These are Bank of America, Wells Fargo, JP Morgan Chase, and Citigroup. According to CNN, the moratoriums are until the end of the first week of March, for the most part.
Most analysts see this as a good thing. And, for some people it is. If you are behind but not in foreclosure, this will give you time to get a modification done with your lender. It will also give the lenders time to get a new program in place to work with you.
But, if you are in foreclosure and there has been no sale date yet, your sale date will be postponed. That can be good news, if the banks will work with you. However, if the banks will not work with you, your sale date may be changed with no notice – ever. You may not find out that your house has sold until a real estate agent comes up and offers you cash for keys.
I am going to give the banks the benefit of the doubt on this. I am going to assume that they will work with people who are in foreclosure and give notice before the sale, if it is after the moratorium expires. But, I will not be surprised if they start selling homes like hotcakes after the March deadline.