WASHINGTON -(Dow Jones)- JPMorgan Chase & Co. (JPM), Citigroup Inc. (C), Bank of America Corp. (BAC) and Wells Fargo & Co. (WFC) have committed to temporary moratoriums on foreclosures as the government works on a financial stability plan slated to include billions of dollars aimed at keeping people in their homes.”
Info on Jim the Realtor’s site:
“Here are the current counts of bank-owned SFRs and condos in San Diego County – these ought to be enough to tide us over for a month, but get the train back on the tracks soon!
Citigroup – 168
Morgan Stanley – 205
JP Morgan Chase – 265
WFB/Wachovia – 417
Bank of America – 1,725
Total – 2,780
We know that there are over 10,000 bank-owned properties currently in the county, so I doubt that I picked up every one owned by these four lenders. The BofA count includes Countrywide, Bank of New York, Deutsche, and US Bank, plus the private-label CWabs.”
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I would imagine that if the banks brought those 7,220 REOs to market that the resultant markdowns in the rest of their books would make it clear that they are insolvent. The government is still trying to figure out a way to make the taxpayers pay for all these bad loans in a way that is politically palatable. This foreclosure moratorium is just a way to buy time in hopes that the government will eventually figure out a way to bail out the banks without the taxpayers knowing that it is a bailout. I think it’s going to be tough to do as even J6P is pretty well aware of what’s going on with these housing bailouts nowadays.
