According to the Wall Street Journal, Citigroup, Inc., has announced a program that will temporarily lower mortgage payments to an average of $500 a month for certain borrowers who have recently lost their jobs and are at least 60 days behind on their mortgage payments. Borrowers will be allowed to make the lower payments for three months. Citigroup will waive interest and penalties during this period. The program applies only to loans of $417,500 or lower. To qualify for the program, borrowers have to provide proof of unemployment. They must also sign a form promising that they will look for a job and let Citigroup know if they've found one.
This makes so much more sense than letting judges rewrite mortgages. Since Citigroup, Inc., holds the mortgages, they have a vested interest in getting things done right. I hope other mortgage lenders will follow suit if they are able.
Leave a comment