Citigroup to suspend foreclosures for 30 days

[Joseph Burkeson, CMI]

Citigroup to suspend foreclosures for 30 days
Bank is working on ‘long-term fundamental alternatives’ to foreclosure

WASHINGTON - Citigroup Inc. will suspend foreclosures and evictions for 30 days in a temporary break for about 4,000 borrowers during the holiday season.

The New York-based bank said Thursday the suspension will run from Friday through Jan. 17. It applies only to borrowers whose loans are owned by Citi. Borrowers who make payments to Citi but whose loans are owned by other investors are out of luck.

"We want our borrowers to have a much less stressful time, to spend their time with their families during the holidays as opposed to worrying about their homes," Sanjiv Das, head of the company's mortgage division, said in an interview.

The suspension means Citi will halt foreclosure sales and stop evicting homeowners from properties it has already seized. The company projects it will help 2,000 homeowners with scheduled foreclosure sales and another 2,000 that were due to receive foreclosure notices.

Das also said the company is working on "some long-term fundamental alternatives" to foreclosure, but declined to be specific. "We know that moratoriums are not permanent solutions," he said.

Most major lenders suspended foreclosures last winter while the Obama administration developed its $75 billion loan modification program. Foreclosures picked up again after those suspensions lifted. In recent months, they have fallen as banks evaluate whether borrowers qualify for the government program.

Citi has enrolled about 100,000 borrowers in the Obama program, but had made only about 270 of those modifications permanent as of the end of last month, according to a Treasury Department report. But Das said the low number resulted from a "reporting error" and said it will rise dramatically by year-end.

"I have put a lot of pressure on my team to make sure that there is almost nothing left in the pipeline," he said.

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Appropriate Christmas Music

[Michael Larson]

I guess they will do anything to hide the real value of of all those bad mortgages they hold which would reveal they are bankrupt.

[Joseph Burkeson, CMI]

Originally Posted by mlarson

I guess they will do anything to hide the real value of of all those bad mortgages they hold which would reveal they are bankrupt.

Where is your Christmas spirit?

[Michael Larson]

Originally Posted by jburkeson1

Where is your Christmas spirit?

My Christmas Spirit comes from my faith in Jesus Christ and the seasonal remembrance of the glorious gift we have been given.

It does not extend to bankers who have been lying to us and scamming the system and stealing from the American taxpayer.

[Joseph Burkeson, CMI]

Originally Posted by mlarson

My Christmas Spirit comes from my faith in Jesus Christ and the seasonal remembrance of the glorious gift we have been given.

It does not extend to bankers who have been lying to us and scamming the system and stealing from the American taxpayer.

Thanks for sharing.