Foreclosure moratoriums extended by BofA, Wells Fargo

02.20.09
By Sarah Beldo

Following the unveiling of President Obama's home loan relief plan, two major banks say they are extending their moratoriums on foreclosures.

On Thursday, Bank of America announced it will not engage in any foreclosure sales until the details of the Homeowner Affordability and Stability Plan are released.

"We want to ensure that any borrower who has sufficient income and the desire to sustain homeownership has the ability to do so using any and all tools we have available," Bank of America's Barbara Desoer said.

The moratorium applies to mortgage loans owned and serviced by Bank of America, Countrywide and subsidiaries of Merrill Lynch, as well as any owned by participating investors.

Meanwhile, Well Fargo will also lengthen its moratorium. The financial institution said it will not initiate any foreclosure sales until at least March 13th.

"For those loans we service for other investors, we also will not proceed with home foreclosure sales until such date that our investors will allow," said Mike Heid of Well Fargo. He urged customers to remain patient as the bank deals with inquiries about the plan.

The government estimates that up to 4 million households could benefit from elements of Obama's plan aimed at helping families avoid foreclosure.

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Two banks are lengthening their foreclosure moratoriums