Citi Launches Program To Help Unemployed Mortgage Holders
Mar 3rd, 2009 by Vinny
“Thousands” may be eligible to take part in the Homeowner Unemployment Assist program in the next two years, Citigroup said, calling it another way in which it can help people avoid foreclosure.
Under the plan, borrowers will be allowed to pay reduced mortgage payments for three months, with the average required payment for most qualifying customers pegged at $500 a month.
“Our Homeowner Unemployment Assist program is intended to serve as a bridge toward a longer-term solution, helping homeowners stay in their homes and in their communities while they get their feet back on the ground,” said Sanjiv Das, chief executive of CitiMortgage.
Borrowers with first mortgages whose loans are owned and serviced by CitiMortgage and who meet certain other criteria will be eligible to participate in the program. Borrowers who find employment during the three-month period can either resume their original monthly payments or receive a long-term loan modification.
“If the customer is not employed within three months, Citi will work with customers on a case-by-case basis to explore the best solutions,” the company said in its announcement.
The bank also said that it will “consider expanding the program to include borrowers at earlier stages of delinquency or who are current on their loans, as appropriate.”
Citigroup launched on Feb. 12 a one-month foreclosure moratorium on all Citi- owned first mortgage loans that are for principal residences, and with other investors with whom it has reached agreement. The bank is waiting for final details of the Obama administration’s loan-modification program.
Citi announced its Homeowner Assistance program in November, saying at the time it would contact 500,000 mortgage holders to ensure they could pay their loans.
UPDATE: Citi Launches Program To Help Unemployed Mortgage Holders.
