Citigroup intends to hold up a large amount of foreclosures. The company will reach out to 500,000 homeowners who are currently keeping up with their payments, but might be at risk of foreclosure. They will concentrate their efforts in Arizona, California, Florida, Michigan, Ohio and Indiana, to protect about $20 billion of mortgages. And how will they do this? With “a team of 600 salespeople.” Jobs!
Before congratulating Citi for saving the economy through jobs and homes, let’s not forget the troubled bank Citi isn’t doing this out of the goodness of its heart. It saves them money to prevent foreclosures.
AP: Citigroup says it is imposing a moratorium on most foreclosures as part of a series of initiatives aimed at helping at-risk borrowers remain in their homes — making Citi the latest big bank to announce sweeping efforts to try to curtail losses from souring mortgages.
Citi said late Monday it won’t initiate a foreclosure or complete a foreclosure sale on any eligible borrower who seeks to stay in a home if it is the borrower’s principal residence, the homeowner is working in good faith with Citi and has sufficient income to make affordable mortgage payments.
Citi said it is also working to expand the program to include mortgages the bank services but does not own.
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