Citigroup Inc. announced Tuesday that it will preemptively contact 500,000 mortgage holders to restructure their mortgage terms on as much as $20 billion in home loans for borrowers who are current on their home loan payments but in danger of falling behind. Under its new program, the Citi Homeowner Assistance Program, Citi is focusing on borrowers who live in areas that are likely to face “extreme economic distress.”
“Under our new program we will preemptively reach out to help homeowners before they become delinquent, which is critical to avoiding the loss of a home and protecting their credit score and future borrowing potential,” said Sanjiv Das, chief executive officer of CitiMortgage.
Citi extended its moratorium on foreclosures, saying it won’t begin or complete a foreclosure sale on a home on which it owns the home mortgage if the borrower wants to stay in the home, which is his or her principal residence. And, Citi said it is also working with investors to expand the Citi Homeowner Assistance program to include mortgages Citi services but does not own.
It added that it recently streamlined its loan modification program to rework delinquent loans. This revamped program uses a simplified formula to figure out an affordable payment as a percentage of the borrower’s gross income. It then reduces the monthly payment to that amount by either reducing interest rates on the loan, extending the loan’s term or forgiveness of principal. You do not have to work with foreclosure lawyers if you would rather deal with a foreclosure prevention company or the lender directly.
“We believe at-risk borrowers should not have to wait until they are facing potential foreclosure before they become eligible for a loan modification or a foreclosure pause,” said Eric Eve, senior vice president at Citi. Since 2007, they have helped nearly 370,000 families, representing more than $35 billion in underlying loans, avoid foreclosure. Even if you’ve been turned down previously, call CitiMortgage. You may qualify under its newly announced program.
AFP/File – US bank Citigroup said it would cut up to 50,000 jobs worldwide as the company struggles with the global … NEW YORK (AFP) – A brutal financial crisis showed its teeth on Monday as the banking giant Citigroup
Comment by citigroup bankruptcy — November 29, 2008 @ 2:38 am
In September 2007, with Wall Street confronting a crisis caused by too many souring mortgages, Citigroup executives gathered in a wood-paneled library to assess their own well-being. There, Citigroup’s chief executive, Charles O. Prince
Comment by citigroup news — November 29, 2008 @ 5:30 am