Bank temporarily reduces payments
Citigroup Inc. has stepped up to the plate when it comes to helping out people who are joining an ever-larger category: the unemployed.
The bank has started the Homeowner Unemployment Assist program, which allows unemployed mortgage holders who are late on their personal loans to make payments of (on average) $500 monthly for three months.
A little help
Granted, it’s pretty unrealistic to think that in this job market unemployed workers will find new employment in three months. But it’s a start.
Thousands may be eligible for the program, which is aimed at avoiding more home foreclosures.
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, according to CNN Money.
After a job search well done
If mortgage holders taking advantage of the program do find employment during the three-month period, they can resume their original monthly payments or get a long-term loan modification.
This makes perfect sense to me, as many “re-employed” workers are accepting pay that is far lower than their previous jobs. Borrowers will be able to retool their loans to fit their new circumstances.
A gray area
Citibank is apparently aware that many customers will not be able to find employment during the three-month stint. A company spokesperson has said that its customers will not be left hanging in the event their situation does not improve.
“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 an announcement.
Still in foreclosure moratorium
The bank has said it will consider extending the Homeowner Unemployment Assist program to borrowers who are not yet delinquent on payments, if the situation warrants it.
Feb. 12, Citigroup put a one-month moratorium on home foreclosures. It is still waiting for final details on the Obama administration’s loan modification program.
A simple loan modification could make all the difference to families who need a helping hand. This is far different than a handout. I applaud the bank’s efforts. I also agree with Peter Stone, it is the right thing to do considering they received bailout money.
That’s a good thing they’re doing, but that said, I think its also exactly what they should be doing after Citigroup got such a huge sum from the taxpayers. It seems to kind of be what they owe for getting a bailout – by helping out the very people who paid to keep the company afloat.
Sound like Citigroup is trying to pay off some debt. Nonetheless, it is a good deed. Many people are struggling to keep their homes while in the process of finding a job. And yes people are snatching up any job opportunity whether it’s scraping gum or cleaning toilets; a job is a job. We cannot afford to be finicky when it comes to the unemployment issue. If this program could help people avoid further foreclosures and can also fit well into peoples’ budget modification, great! It’s a good start, Citigroup.