Confused about foreclosure "freezes" by BofA, etc.

[Bienes Raices]

I was under the impression that the "freeze" by numerous large banks would affect preforeclosures, delaying them from going to auction until the paperwork is re-checked. But then I heard on news radio that would-be owner occupants with nowhere to live because they cannot close on the REOs they were under contract on, due to the freeze. Does anyone know what the real story is?