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Citigroup Homeowner Unemployment Assist to Help Mortgage Holders
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by Tina Kells | March 3, 2009 at 12:25 pm
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Citigroup has gone back to the US Treasury asking for more taxpayer funded bailout money so it is about time the company gave something back to the people. Citigroup announced today that some mortgage holders may qualify for lower payments and other aid under a Homeowner Unemployment Assist program.
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Citigroup's Homeowner Unemployment Assist program is designed to help people who have lost their jobs keep their homes. Who qualifies for help, and the type of help they will get, are to be determined on a case by case basis.
The ultimate goal of the Homeowner Unemployment Assist program is to slow down the foreclosure rate and keep people in their homes. As the recession becomes a depression stabilization of the real estate market grows increasingly important and Citigroup, which is heavily leveraged in mortgages and mortgage backed securities, needs to stop rising foreclosures.
Learn more at the Citigroup Office of Homeownership Preservation
While the Homeowner Unemployment Assist program is a good PR move and will really help some people it is important to remember that Citigroup needs to put a stop to mass foreclosures for its own good.
If Citigroup is left holding foreclosed upon deeds to depreciating real estate assets it makes it nearly impossible for the bank to ever reach viability. Demonstrating a strong recovery plan and a targeted viability date is central to the US Treasury's bailout dealings with Citigroup.
Unemployed homeowners who may qualify for assistance from Citigroup under the Homeowner Unemployment Assist program include those that are 60 days or more past due on their mortgages or in foreclosure and can pay the reduced amount. Customers must also have a first mortgage loan that is owned and serviced by CitiMortgage Inc. and conforms to government sponsored enterprise limits. The house must also be the customer's primary residence, with homeowners meeting all insurer and guaranty requirements.
"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," CitiMortgage Chief Executive Sanjiv Das said in a statement.
Citigroup predicts thousands of homeowners may be eligible for the program over the next two years.
Those that partake in the program and are still without jobs after three months will have their mortgages handled on a case-by-case basis to come up with the best payment option, Citigroup said. Others that find work within the three-month period can go back to paying their original mortgage amount or receive a long-term loan modification if qualified.
The program may also be expanded to include customers that are in early delinquency stages or are current on their mortgage at a later point in time once an initial evaluation of the program is complete.
Homeowner Unemployment Assist is part of the bank's existing Citi Homeowner Assistance, which tries to help customers avoid foreclosure.
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Most RecentMost Recommended Comments (2)
at 13:27 on March 27th, 2009
What a bunch of lies! I've been trying to get help for months now. My mortgage is with Citi, backed by Freddie Mac.
At first I was told it would be 30 days, then 45, then 90. As of last week after spending five hours on the phone with them and being transferred to five different people, I've been told to call back in a couple of months and maybe they could help. Yeah right!
They are nothing but a bunch of liars and thieves, with no intention of helping those people. Don't waste your time asking for help.
at 12:36 on May 11th, 2009
I am so #$%$^$ing mad. I get letters with dates already 1 week into the 10day response time. I call to get 5 different numbers to vall and end up back with original who sends me back to the script. What do people that are older than me with hearing diffuculties to do? I am 3 months behind. I have been unemployed since March 08 and at 60 years old with numerous degrees I get the look of "what good could you possible be to us?" If you do get an interview the person you talk to is younger than my underware....all me dreams have died in the years form 2001-2008, maybe I should move to a ranch in Crawford, Texas.