Citi Will Lower Mortgage Payments for Unemployed Homeowners

Home Buying News - March 3, 2009 -- Unemployed homeowners with home loans owned by CitiMortgage may be able to lower their mortgage payments to $500 for a period of three months. It's part of a new program being offered by Citi to help struggling homeowners stay in their homes.

As part of its Homeowner Assistance Program, Citigroup, Inc. said it will temporarily lower the mortgage payments for certain borrowers, particularly those who have recently lost a job. Citi announced their Homeowner Unemployment Assist program in a press release that went out earlier today.

The program is designed to help unemployed homeowners stay in their homes, at a time when foreclosure rates are still soaring across the United States. To be eligible for the new program, homeowners must have a mortgage loan that is currently owned by CitiMortgage. Other eligibility criteria may apply as well.

Sanjiv Das, the current CEO of CitiMortgage, said: "We understand the emotional and financial trauma that can occur when homeowners lose their jobs ... and can no longer afford their mortgage payments. Our Homeowner Unemployment Assist program is ... helping homeowners stay in their homes and in their communities while they get their feet back on the ground."

How the Program Works

The benefits for eligible homeowners equate to a three-month reduction in mortgage payments. CitiMortgage will reduce the size of monthly payments due to (on average) $500. To put this in perspective, let's say I currently pay $1,500 a month toward my CitiMortgage home loan. If I were to lose my job, I could be eligible for the Homeowner Unemployment Assist program, which could reduce the size of my mortgage payment considerably, for a period of three months. This would relieve some of my financial burdens while I looked for a new job.

While the Homeowner Unemployment Assist program is a short-term solution, Citi is also making strides toward long-term fixes. They offer mortgage modifications to certain borrowers, as a way of making their payments more affordable for the life of the loan. Citi also provides a variety of counseling services to its customers.

How to Apply for Assistance

If you have a mortgage loan currently being serviced CitiMortgage, and you have recently become unemployed, you may be eligible for their new assistance program. To learn more about it, visit their Office of Homeownership Preservation and look for the link pertaining to the unempolyment program.

Related News:

• Citigroup Proposes Mortgage Modification Program
• How Do Home Loan Modifications Work