Citigroup joins FDIC and Morgan Stanley Chase to alleviate foreclosures

Citigroup joins the Federal Deposit Insurance Corporation (FDIC), Morgan Stanley Chase and a group of a group of other large banks in starting an aggress program to alleviate foreclosures of single family homes.

On Monday Citigroup announced that it will be freeze any new forecloses and put a hold on any foreclosure that is within the foreclosure process.

The freeze will only be available to certain homeowners, you will have to match the criteria if you wish to benefit from the plan, the homeowner would want to stay in the property, that they would have sufficient income to cover the restructured mortgage payments and that they will work with bank to resolve any problems.

Initially you will have to have a home loan by Citigroup, although the bank has said that they are looking to expand the program, so that homeowner with loan from other banks can use the program.

Other banks such as Wachovia who is in the process of being brought by Wells Fargo have also realized that it is better to avoid costly foreclosures and work with the borrower even though this is a more expensive in the short term.

Source: mortgagenewsdaily