Will Citigroup's hault on foreclosures help Colorado homeowners?

Hault on Foreclosures?

Citigroup unveiled a housing relief program last week. The plan includes contacting appx. 500,000 borrowers who live in areas of Extreme Distress, focusing on areas with falling home prices and rising unemployment. The six states it will focus on are Arizona, California, Florida, Indiana, Michigan and Ohio., NOT Colorado

Moratorium on Foreclosure?

It has also extended a moratorium on foreclosures; and has said they won't begin or complete a foreclosure sale on a home on which it owns the mortgage if the borrower wants to stay in the home which is his or her principal residence. I wasn't able to find out if this halt in foreclosures applies to home owners in all states, or just the 6 states listed above. One important caveat to note, the program only covers loans that Citigroup owns, but they have said they are working with investors to apply the program to other loans that the company does not own but services.

Both Bank of America and J.P. Morgan Chase have also announced programs to help home owners facing foreclosure. Wells Fargo, which recently purchased Wachavioa, has not announced a similar initiative.

As part of writing this article, I went to Citigroup's web site; but couldn't find any type of press release that confirmed the details above; but I did find plenty of related articles on Google. One article in the Wall Street Journal stated that borrowers whose mortgage are more than 40% of their income may get their mortgage payments reduced by Citigroup.

I have a variety of clients who are delinquent on their home loans; and several of them would prefer to work out some type of temporary debt relief vs. having their home go into foreclosure or doing a short-sale It's been challenging for them to get to right person; as the same person that has hounded them on the phone about their past due mortgage, is not the same person who can help modify their loan. I'm hopeful that with Citigroup's new plan and some of the other plans being introduced by lenders; it will start to provide some relief for some homeowners.

The original article was posted on Colorado Springs Vintage Homes

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Posted by Kathy Torline