Wednesday, March 4, 2009

Citi's Unemployed Mortgage Program

For the recently laid off folks that bank with Citi may get a bit of a reprieve. The lender has started a program that allows for 3 months of reduced mortgage payments while the borrower looks for new employment. If the new employment does not sufficiently cover the older loan amounts they can then be modified. This article titled Citi Launches Program To Help Unemployed Mortgage Holders from CNN Money sounds like it might help a small portion of borrowers. Lets take a look -

"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.

Hopefully this will have no impact on the borrowers credit score. This is a program that sounds wonderful on paper but everything depends on the implementation.

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