Citigroup announced today that it would lower some mortgage payments to unemployed homeowners as part of its Unemployment Assist Program. Those that quality could see their payments reduced to $500 per month for three months. Criteria to quality include:
- Homeowner must be unemployed.
- Homeowner is 60 days or more past due on their mortgage or in foreclosure and can pay the reduced amount.
- Customer must have a first loan that is serviced by CitiMortgage Inc.
- The customer holds a conforming loan.
- The home is a primary residence.
- Homeowner meets all insurer and guarantor requirements.
After three months, if the homeowner is still without a job, Citigroup will evaluate each situation on a case-by-base basis to determine the best payment option. Those that find work will go back to paying their original mortgage amount. Sounds like a real incentive to find a job.
As one of the largest recipients of Federal bailout money, it's clear that Citi is being forced into this program by the Feds. For better or worse, expect to see more of these homeowner bailout programs as more government money flows into partially nationalized, large commercial banks like Citi and Bank of America.
Comments
Add your Comment