Citigroup is the latest large U.S. bank to begin offering help for homeowners in an effort to curb foreclosures and keep homeowners in homes. Citigroup announced that they will suspend any foreclosures as long as the home is the homeowner’s primary residence, the homeowner has “sufficient income to make affordable mortgage payments” and the “homeowner is working in good faith with Citi”.
In addition to suspending current foreclosures, Citi will contact homeowners that may need assistance even though they are current on mortgage payments and attempt to make it easier to avoid future delinquency. The move by Citigroup primarily targets troubled states such as Arizona, California, Indiana, Ohio, Michigan and Florida and will affect up to $20 billion in mortgages and up to 500,000 homeowners.
Key Points
- Citigroup suspends most foreclosures
- Citigroup plans to help nearly 500,000 homeowners avoid future problems with payments
Adjust Mortgage Principal
Adjust Interest Rates
Extend Mortgage Term
- Citigroup’s efforts may affect up to $20 billion in mortgages
- Since early last year, Citigroup has already helped nearly 370,000 families avoid foreclosure
- Citigroup plans to devote a team of 600 sales people to reach out to homeowners
- Citigroup joins Bank of America and JP Morgan in officially announcing similar help for homeowners
Will the combined efforts of Citigroup, JP Morgan, Bank of America and the U.S. Government be enough to stabilize home prices, keep families in homes and keep the banks in business?
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Will this really help, or just delay the inevitable? It is good to hear that they are willing to try something, as foreclosing on a home is not a cheep thing for a mortgage company to do.
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In the UK the government has been putting pressure on mortgage lenders to do all they can to avoid foreclosure.
J Boyer, it will help as many people end up in foreclosure due to job losses. If they are given more time to find a new job then they can continue to pay their mortgage.
I don’t know if it will help or not, but at least they making an effort to do something rather than just waiting for the bailout.
I think it is important that they are at least making a valiant effort to help people during an economic crisis. Hopefully, this will inspire other corporations to take some of the weight off of the shoulders of their customers.
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I’ll have to agree with Jessica. At least they’re doing something and putting in some kind of effort. Let the crisis unfreeze.
Wow, I never knew that Citigroup helps home owners. That’s pretty interesting…
I have to agree with Mike Taylor at least they are doing efforts. Success is not every thing.
Go to agree, any help for the struggling homeowner is better than none at all.
More companies should voluntarily do this. Aside the fact it’s good for the economy, it raises there profile immensely.
Sound like Citigroup is trying to pay off some debt. Nonetheless, it is a good deed. Many people are struggling to keep their homes while in the process of finding a job. And yes people are snatching up any job opportunity whether it’s scraping gum or cleaning toilets; a job is a job. We cannot afford to be finicky when it comes to the unemployment issue. If this program could help people avoid further foreclosures and can also fit well into peoples’ budget modification, great! It’s a good start, Citigroup.
Cheers,Harry,Panama property
They will only help homeowners in the process of helping themselves. This ia a damaged institution in no position to help others at their expense
I hope they can help many of their client/borrowers as many need help.
I really hope that all the other lenders and banks would do the same. We need to get back on track.
Its about time a bank started to give a little back. Its a big change from them not passing on interest cuts to the rest of the public.
On February 11, 2010 Citygroup announced that it will let delinquent home owners (that don’t qualify for federal relief) stay in their Indianapolis, Indiana homes for six months, as long as, they leave the property in good shape and turn over their keys when they leave.
Estimates of 20,000 or more borrowers could be affected in states like Michigan, Ohio, Florida, Illinois, Texas and New Jersey.