On this years foreclosure moratorium

Last years foreclosure moratorium lasted from Thanksgiving through March. For California it was extra bad because there was a California specific law that extended the length for foreclosure timeline in July which extended many foreclosures into holiday foreclosure moratorium which then ran into the new Administrations loan mod effort.

This season it is much different. I only see one major servicer with a foreclosure moratorium, Citigroup has said they will suspend foreclosures for one month. Fannie Mae and Freddie Mac have only said they will suspend foreclosure evictions not foreclosures themselves and this only from December 19th through January 3rd. Bank of America and Chase have said they will suspend foreclosure evictions from December 21st through January 3rd.

Last year the backlog of foreclosed homes on the market was much greater so the moratorium mattered less. This will at least mean the supply shortage for the market shouldn't get too much worse. It is at least a recognition in some small way that you don't solve the problem by simply delaying the decision to some point in the future, though clearly that is the preferred method by the regulators.