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SUNDAY, NOVEMBER 8, 2009
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7

Citi Offers Jobless Lower Mortgage Payments

Recently unemployed can drop payments to average of $500

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(Newser) – Citigroup is announcing a new program easing mortgage payments to an average of $500 a month for homeowners who have lost their jobs and fallen behind on their debts, reports the Wall Street Journal. Borrowers will be allowed to make the lower payments for 3 months and will pay no interest. The move comes days before the Obama administration is expected to introduce new guidelines for its loan modification program.

To qualify for the program, borrowers will need to show proof of unemployment and sign a form promising that they will seek a job and tell the bank if they find one. Only mortgages below $417,500 qualify for the program, and they must be both owned and serviced by CitiMortgage. The lender's CEO said that the federal government "had no role at all" in the new effort.

The American flag and the Citigroup flag fly together outside Citigoup's headquarters, Friday, Feb. 27, 2009 in New York.
The American flag and the Citigroup flag fly together outside Citigoup's headquarters, Friday, Feb. 27, 2009 in New York.   (AP Photo/Mary Altaffer)
A pedestrian passes by a Citibank in downtown Boston, Friday, Feb. 27, 2009.
A pedestrian passes by a Citibank in downtown Boston, Friday, Feb. 27, 2009.   (AP Photo/Bill Sikes)
Citigroup Center is seen in New York, Monday, Feb. 23, 2009.
Citigroup Center is seen in New York, Monday, Feb. 23, 2009.   (AP Photo/Seth Wenig)
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7 comments
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Doctor_Zaius
Mar 3, 09 7:30 AM CST
This is a step in the right direction. Reply
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markhebert42
Mar 3, 09 7:32 AM CST
With this job market, it's going to take a whole hell of a lot longer than three months to find a job. Reply
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IN RESPONSE:
Doctor_Zaius
Mar 3, 09 8:01 AM CST
Even the longest journey begins with but a single step.
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Newser001
Mar 3, 09 10:27 AM CST
Let's start talking of 'principal' reduction, as well. Reply
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bacimom
Mar 3, 09 12:35 PM CST
The problem is finding mortgages that they both service AND own. Reply
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