Citigroup Program Helps Unemployed Homeowners

Bank temporarily reduces payments

Citigroup Inc. has stepped up to the plate when it comes to helping out people who are joining an ever-larger category: the unemployed.

The bank has started the Homeowner Unemployment Assist program, which allows unemployed mortgage holders who are late on their personal loans to make payments of (on average) $500 monthly for three months.

A little help

Granted, it’s pretty unrealistic to think that in this job market unemployed workers will find new employment in three months. But it’s a start.

Thousands may be eligible for the program, which is aimed at avoiding more home foreclosures.

Borrowers with first mortgages whose loans are owned and serviced by CitiMortgage and who meet certain other criteria will be eligible to participate in the program, according to CNN Money.

After a job search well done

If mortgage holders taking advantage of the program do find employment during the three-month period, they can resume their original monthly payments or get a long-term loan modification.

This makes perfect sense to me, as many “re-employed” workers are accepting pay that is far lower than their previous jobs. Borrowers will be able to retool their loans to fit their new circumstances.

A gray area

Citibank is apparently aware that many customers will not be able to find employment during the three-month stint.  A company spokesperson has said that its customers will not be left hanging in the event their situation does not improve. ... click here to read the rest of the article titled "Citigroup Program Helps Unemployed Homeowners"