Wells Fargo, Chase and other big banks to suspend foreclosures during holiday season 2011

Wells Fargo is once again putting a freeze on its foreclosure operation on certain dates throughout the 2011 holiday season, which runs from about Nov. 23, 2011 to Jan. 2, 2012, and includes widespread observances in the United States such as Thanksgiving, Hanukkah, Christmas and New Year’s Day, among others.

SFGate.com confirmed the holiday moratorium, adding that other financial institutions such as JP Morgan Chase and Bank of America are also implementing similar initiatives to reduce turmoil and/or displacement during such a family-oriented time.

Major government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie are expected to announce their eviction suspension policies as it relates to this holiday season very soon.

Check out the official Wells Fargo foreclosure moratorium statement after the jump:

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Foreclosure process a ‘mess’ right now, but not ‘life-threatening’ for J.P. Morgan Chase

That’s the assessment from Jamie Dimon, who is the CEO behind one of the largest money-lending financial institutions in the nation, J.P. Morgan Chase

He explains via MarketWatch.com:

“It is a big mess, it has cost us a lot of money. Unfortunately, the only way to do it right is name by name by name…. We will do as many as we can. There is a lot of paperwork. The paperwork is different in every single state…. There were multiple checks and balances and there may be mistakes made in the foreclosure process, but they are very few and boy, when we find them, we try to make up for them right away.”

It’s nice to hear that big banks area learning from their mistakes revealed through the recent robo-signing scandal and are still working feverishly to correct them sooner rather than later. And fix them the right way … even if it means it may cost more.

Each foreclosure case needs to be scrutinized and airtight before heading to the auction block — there’s just too much at stake. That’s the way it should have always been and should remain indefinitely.

But Dimon cautions that because each case needs to be scoured with a fine-toothed comb, and because foreclosure laws are different (and changing) state-by-state, it could take “years before this plays out.” No more cutting corners.

If nothing else that gives distressed homeowners and their families more time to figure out their next moves, perhaps literally, which isn’t a bad thing, at all, considering the difficult circumstances.

When will the investigations into the foreclosure process end?

“Next month” (Jan. 2011), according to a joint statement from Treasury Secretary Timothy Geithner and Housing and Urban Development Secretary Shaun Donovan.

ABCNews.com has the scoop:

“We expect the results of the investigations will be presented to us next month…. The task force will take whatever action is necessary to hold accountable any institution that acted improperly.”

The task force, which comprises a “group of officials from 11 federal agencies,” is investigating the possibility of fraudulent/faulty foreclosure paperwork filed by “robo-signers” on behalf of several major lending institutions.

So far the task force has found has found no sign of “systemic troubles with home foreclosures that might threaten U.S. financial stability.”

Let’s hope it stays that way and that the task force fixes whatever problems it finds with the foreclosure process once and for all.

The sooner, the better.

Foreclosure eviction process to stop during the holiday season

Mortgage industry behemoths Fannie Mae and Freddie Mac, which back and/or own a large majority of home loans throughout the United States, recently announced that they would halt all foreclosure evictions from Dec. 20, 2010, to Jan. 3, 2011.

From Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac:

“If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays.”

Both companies, as well as several others, initiated a similar freeze last year, giving distressed homeowners a little peace of mind during the holiday season.

Eviction is the final stage of the foreclosure process, which can last several months — even years, depending on state laws and circumstances. It’s a last resort if all other rescue options such as loan modification and short sale, among others, are completely exhausted.

If you need foreclosure help be sure to check out several possible solutions that we have shared in our “Stop Foreclosure” archive.

Effects of foreclosure freeze: Sales dry up, investors turn cautious

Stubborn distressed homeowners. Possible legal wrangling. Skeptical secondary post-flip buyers.

These are now all major concerns for cash-laden real estate investors who were snatching up foreclosed homes from banks, renovating and then re-selling them for profits several weeks later, according to CNN.com.

What happened?

Several major banks recently put the “freeze” on foreclosure sales to investigate improper “robo-signed” paperwork. There were legitimate concerns that homeowners were evicted carelessly and perhaps even fraudulently in assembly line-like fashion.

The good news is that the banks have began correcting their mistakes, which were overall relatively minor. The bad news is that it has freaked out investors, which were propping up an unstable housing market, and in the process, rehabbing community eyesores.

This about sums up the situation:

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