Don’t grab that payday loan so fast
Two companies are working on making these signs less common.
Homeowners considering getting instant payday loans to cover their mortgage so they don’t get evicted might be able to hold off.
Moratorium on foreclosures
Payday loans are great for keeping your credit in good standing if you use them to make mortgage payments on time. However, if you are facing foreclosure, it’s probably too late to be worrying about your credit.
If your mortgage is held by either JPMorgan or Citigroup, you don’t have to worry about foreclosure, either. At least not for a month. So instead of getting instant payday loans, start saving now to make sure you have the money to keep your house next month.
Banks wait for word from Obama
JPMorgan Chief Executive Jamie Dimon says the company will not foreclose any owner-occupied homes before March 6. Citigroup won’t foreclose mortgage loans on homes that are the borrower’s primary residence.
Citigroup’s moratorium will last through March 12 or until the White House has finalized the loan modification program, whichever comes first.
Making an example
Fannie Mae and Freddie Mac, which are government-controlled, have already stopped evicting homeowners from foreclosed homes. The companies will continue to hold off through the end of this month.
Government intervention
Barack Obama’s administration is currently considering working on the loan modification deal. The program would use taxpayer money to lower monthly payments for homeowners facing foreclosure. However, that group of people is still growing.
More than 274,000 U.S. households received at least one foreclosure-related notice last month, according to RealtyTrac Inc.
Not everyone will be able to receive help, and it will be tough to decide who qualifies.
Stay off the street
For homeowners who are facing foreclosure, instant payday loans can keep you from becoming homeless, and there are usually no credit checks.
Related articles
- U.S. home foreclosure notices hit 274,000 in January (cbc.ca)
- Fannie and Freddie suspend foreclosures (money.cnn.com)
- Foreclosures Fall From December To January (huffingtonpost.com)
- White House may move to buy mortgages (msnbc.msn.com)
- Streamlined Loan Modification Now Available (azmortgageguru.com)
- Mortgage Modification Program (kristalsellsdenver.com)
Hey – this is good news. Maybe they’re starting to use what those TARP funds are FOR, instead of corporate jets, bonuses, and trips to Switzerland to get watches fixed. I know when I’m told by the government to pay my taxes by April 15th, I do it – these guys were told to halt the foreclosures and work out a way to keep people in homes, but at least they’re starting to get it done.
Save the people, give them a chance to get back on their feet. This is the least these greedy banks and CEO’s could do for the people. Come to think of it, they should actually extend the deadline.