It basically means that the banks suspend the foreclosure proceedings. It's good for the homeowner who are facing foreclosure due to financial difficulties, at least they will get a chance to work with the bank for any alternatives like loan modification or short sale to avoid foreclosure from their credit.
It will also help the housing market to recover quickly and the house value will also be higher. Foreclosed properties are sold less than the other type of properties and bank also lose more money with the foreclosure proceedings. Overall, I would say the housing market will improve with less and less foreclosed properties on the market, which is already happening in this market.