Citi Offers Jobless Lower Mortgage Payments

Recently unemployed can drop payments to average of $500

By Jason Farago, Newser Staff

Posted Mar 3, 2009 7:25 AM CST

(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. (AP Photo/Mary Altaffer)

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. (AP Photo/Seth Wenig)

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Recently unemployed can drop payments to average of $500

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Moody's Slaps Wall Street's Big Banks With Review

Along with most of Europe's banks

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Banks Ink $26B Deal to Help 2M Homeowners

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Calif., NY May Sign On to Robo-Signing Settlement

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SEC Letting Big Banks Skirt Fraud Penalties

'New York Times' analysis finds 350 instances of banks getting free passes

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Citi Offers Jobless Lower Mortgage Payments

Recently unemployed can drop payments to average of $500

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OTHER STORIES ON OUR RADAR

Citigroup • mortgage • housing crisis • mortgage delinquency

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Moody's Slaps Wall Street's Big Banks With Review

Along with most of Europe's banks

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Banks Ink $26B Deal to Help 2M Homeowners

49 states sign on to deal with nation's top 5 banks

Calif., NY May Sign On to Robo-Signing Settlement

Obama administration nearing deal for mortgage relief

SEC Letting Big Banks Skirt Fraud Penalties

'New York Times' analysis finds 350 instances of banks getting free passes

About Us

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Newser By Users

Community

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Tools

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