Controversial, but at this point it needs to happen. More houses on the market is the last thing anyone wants for many reasons.
Citigroup Inc. and J.P. Morgan Chase & Co. on Friday announced they would temporarily suspend foreclosures, as Washington's debate continued about how to save an economy and moribund housing market. J.P. Morgan CEO Jamie Dimon said in a letter to House Financial Services Committee Chairman Barney Frank, D-Mass, that he would set up a three week moratorium on foreclosures. Frank pressed bankers to on Wednesday to voluntarily set up a moratorium on foreclosures until the Treasury department has put in place a plan to alter mortgages that will help troubled homeowners avoid defaulting on their loans. In a statement, Citigroup said it would suspend foreclosures until the Treasury plan is finalized.
